Gst on purchases of second-hand goods

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Under reverse charge mechanism RCM as per rule 9(4) of CGST Act , whether GST would be payable for purchases of second-hand made by a registered dealer from unregistered persons?

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Yes rcm chargeable if second hand goods are purchased from unregistered dealer by a registered dealer

that I am aware of... but what if the seller is an ordinary person not having any business? Say a person buys a new mobile and sells after a year to a registered trader dealing in second hand mobiles. would your answer be different?

in case of sale from ordinary person , the sale would not amount to supply as it is not in course of his business. therefore RCM would not be applicable as the transaction is outside the scope of GST

but section 9(4) of RCM states that "............. all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both..."

So, since this transaction would be in the course of business of the recipient of goods, would not it be taxable??

In short, under RCM, the course of business needs to be checked from recipient's point of view and not from supplier's point of view.

what say...

 

 

 

Yes rcm chargeable if second hand goods are purchased from unregistered dealer by a registered dealer 

 

No but we need to see that the person supplying the goods is supplying in his course of business or not. Y won't b considering the recipient business thats why no gst

thanks. hope this interpretation is accepted to the department as well. Another doubt is that whether a second-hand goods dealer can avail the margin scheme specified in valuation rules i.e. pay tax on difference of sales and buys. The dealer purchases goods from unregistered retails customers and sells goods to unregistered retails customers. whether the dealer can pay gst on sale value less purchase value??

 

Refer this link https://www.caclubindia.com/news/margin-scheme-under-gst-for-dealers-in-second-hand-goods-in-general--16232.asp

if a firm sold his truck to registered person . the seller use truck for his Transportation of own goods .
then rcm is applicable .?


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