Traders Eligible to Pay GST on Brought Out Goods without doing any manufacturing or deemed manufacturing activity

[yogesh Panchal]

Dear All, GST Tax Experts,

In current central excise law the levy of excise duty on manufactured of finished goods , also manufactured only charged excise duty, the biggest litigation and issues are goods are manufactured, deemed manufacturer, Traders, Dealers & etc. then in the Trading business Trader purchase brought out goods, do not take cenvat credit of excise & service tax, do not take any manufacturing activity on the brought out goods, do not take excise registration and brought out goods cleared without excise duty with adding profit margin, pay CST/VAT.

AI Summary

Debate on GST Applicability for Traders Selling Non-Manufactured Goods; Potential Credit Claims Explored Under Supply Definition. A discussion on the applicability of GST for traders who sell goods without engaging in manufacturing activities. Under current excise laws, excise duty is levied on manufactured goods, and traders selling brought-out goods without manufacturing do not pay excise duty but pay CST/VAT. The query seeks clarity on whether such traders are liable to pay GST on brought-out goods. Responses indicate that under GST, taxation is based on the supply of goods or services, not on manufacturing, allowing traders to potentially claim credit if the definition of supply is met. Further clarification on credit provisions is anticipated.