Important Keyword: GST margin scheme India, second hand goods GST, notification 10/2017 CGST, GST on used goods margin scheme,
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[F.No.354/117/2017-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 28th June, 2017
Notification No. 10/2017 - Central Tax (Rate): CGST exemption for dealers operating under Margin Scheme notified under section 11 (1)
GST: [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the C Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,
hereby exempts intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods and who pays the central tax on the value of outward supply of such second hand goods as determined under sub-rule (5) of rule 32 of the Central Goods and Services tax Rules, 2017, from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Good and Services Tax Act, 2017 (12 of 2017).
2. This notification shall come into force with effect from the 1st day of July, 2017.
(Mohit Tewari)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 10/2017 – Central Tax (Rate)
Q1: What is Notification 10/2017 GST?
Answer: It provides GST exemption under margin scheme.
It ensures GST is payable only on margin, not full value.
Q2: What is margin scheme in GST?
Answer: It taxes only profit portion.
The difference between purchase and selling price is taxed.
Q3: Who can use margin scheme?
Answer: Dealers in second-hand goods.
It applies to resale businesses.
Q4: Is ITC allowed under margin scheme?
Answer: No.
Input Tax Credit cannot be claimed.
Q5: What if margin is negative?
Answer: No GST payable.
Loss transactions are not taxed.
Q6: Does it apply to new goods?
Answer: No.
Only second-hand goods are covered.
Q7: Is this mandatory?
Answer: No.
It is optional, but beneficial.
Q8: How to calculate margin?
Answer: Selling price minus purchase price.
This forms the taxable value.
Q9: Can repair be done on goods?
Answer: Minor repairs allowed.
Major processing may disqualify.
Q10: Is this applicable to cars?
Answer: Yes.
Second-hand car dealers commonly use it.
Download PDF: Notification No. 10/2017 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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