Supply in course of business includes scrap sale of used vans, with GST attracted on consideration received.

The disposal of used cash-carry vans as scrap was treated as a sale of goods for consideration and therefore a supply in the course or furtherance of business. The vans had been acquired for business use, and their disposal when no longer usable was considered incidental or ancillary to the applicant's cash management business. The argument that GST could not apply because input tax credit had not been availed was rejected, since the deeming rule in Schedule I governs supplies without consideration and did not displace a taxable supply for consideration. GST was therefore attracted, although the applicable rate could not be determined on the material before the AAR.

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Issues: Whether disposal of used motor vehicles as scrap by the applicant constituted a supply in the course or furtherance of business and attracted GST.

Analysis: The disposal of the cash-carry vans as scrap was held to be a sale of goods for consideration. The activity was treated as incidental or ancillary to the applicant's cash management business, since the vans were acquired for business use and were discarded when no longer usable. The argument that the disposal fell outside the scope of supply because input tax credit had not been availed was rejected, as the deeming rule in Schedule I applies to supplies without consideration and did not control a transaction that was otherwise a taxable supply for consideration. The absence of complete tariff details meant that only the liability to tax was answered, while the applicable rate could not be specified on the material available.

Conclusion: The question was answered in the affirmative. The sale of the used motor vehicles as scrap was a supply in the course or furtherance of business and attracted GST, subject to the applicable rate being determined from the relevant notifications.

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