AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 690
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....e of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant is a private limited company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: a) Whether applicant dealing in second hand goods and tax is to be paid on the difference between the selling price and purchase price as stipulated in Rule 32(5) of CGST Rules, 2017 if dealer purchases used / second hand gold jewellery from individuals who are not dealers under the GST and at the time of sale there is no change in the form/ nature of goods? b) Whether ITC is allowed to be claimed if purchases are made from the dealer from whom marginal scheme if applicable? 3. The applicant fur....
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....OR ADVANCE RULING, MAHARASHTRA] where the dealer who deal in old jewellery and that jewellery falls under Heading 7113 of the GST Tariff, which overs Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal. The provisions of Rule 32(5) if CGST Rules are applicable to them in respect of old jewellery which are purchased by them. It is clarified that he can avail the benefit of Margin Scheme. e. The applicant states that his contention is that he is also engaged in sale of second hand goods having GST Tariff 7113, he can also avail the benefit of Margin Scheme under GST. f. The applicant explains that Rule 32(5) of the CGST Rules 2017 provides that where a taxable supply is provided by a person dea....
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....a statute is clear, plain and unambiguous, i.e. they are reasonable susceptible to only one meaning, the courts are bound to give effect to that meaning inespective of consequences. Moreover, if the words of the statute are in themselves precise and unambiguous, then no more can be necessary than to expound those words in their natural and ordinary sense. This rule of interpretation is followed in plethora of judgements. A few of the judgements are as under: i. Nelson Motisv. Union of India (AIR 1992 SC 1981) = 1992 (9) TMI 355 - SUPREME COURT ii. Gurudevantt VKSSS Maryadit v. State of Maharashtra (AIR 2001 SC 1980) = 2001 (3) TMI 976 - SUPREME COURT iii. Swedish Match AB v. Securities and Exchange Board of India (AIR 2004 SC 4219) =....
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....vidual in this case) to a registered person (the jeweller in this case) will be paid by the registered person (the jeweller in this case) under reverse charge mechanism. This provision, however, has to be read in conjunction with section 2(105) read with section 7 of the said Act. Section 2(105) defines supplier as a person supplying goods or services. Section 7 provides that a supply is a transaction, for a consideration by a person in the course or furtherance of business. 4. Even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course or furtherance of his business (as selling old gold jewellery is not the business of the said individual), and hence does not qualify to be a supply per....
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....ssions made by the learned representative during the time of hearing were all verified and the issues that needs to be addressed is related to whether the applicant is eligible to utilise the sub-rule (5) of rule 32 of Central Goods and Services Tax Rules, 2017. 6.1 Rule 32 of the CGST Rules, 2017 reads as under: "Rule 32. Determination of value in respect of certain supplies.- (1) Notwithstanding anything contained in the provisions of this Chapter, the value in respect of supplies specified below shall, at the option of the supplier, be determined in the manner provided hereinafter. (2) .......................... (3) .......................... (4) .......................... (5) Where a taxable supply is provided by a person....
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....No. 01/2017-Central Tax (Rate) dated 28th June, 2017 which is taxable at 1.5% under the CGST Act and similarly taxable under the KGST Act, 2017 also at 1.5%. Hence the supplier satisfies the condition that the supply made by him must be a taxable supply. 6.4 Regarding the next condition, the supplier must be a person dealing in buying and selling of second-hand goods. It is seen that the applicant has admitted that he is purchasing used gold jewellery from individuals and selling the same, after cleaning and polishing them. He must not avail any input tax credit on the purchase of such goods. The goods so purchased must be supplied as such and if at all any process is involved, that must not change the nature of the product. The applicant ....