Important Keyword: Notification 10/2017 UTGST Rate, Margin Scheme GST, Second-hand goods GST, Used goods GST exemption, Rule 32(5) GSTGST on used cars, GST reverse charge exemption, UTGST exemption notification, GST valuation second-hand goods, GST margin scheme dealers,
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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 - Union Territory Tax (Rate): UTGST exemption for dealers operating under Margin Scheme notified under section 8 (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 8 of the Union Territory Goods and Services Tax Act, 2017 (14 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 Union territory 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 Union territory tax leviable thereon under sub-section (4) of section 7 of the Union Territory Good and Services Tax Act, 2017 (14 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 - Union Territory Tax (Rate)
Q1. What is Notification No. 10/2017 - UTT (Rate)?
Answer: It grants UTGST exemption on certain purchases of second-hand goods from unregistered suppliers.
The exemption applies to registered dealers operating under the Margin Scheme and paying GST on the margin under Rule 32(5).
Q2. Who can claim this exemption?
Answer: Registered dealers engaged in buying and selling second-hand goods.
The dealer must satisfy all conditions specified in the notification and apply Rule 32(5) valuation.
Q3. Does the exemption apply to all dealers?
Answer: No.
Only dealers engaged in second-hand goods trading and operating under the Margin Scheme can claim the benefit.
Q4. Does the exemption apply to purchases from registered suppliers?
Answer: No.
The notification specifically covers purchases from suppliers who are not registered under GST.
Q5. What is Rule 32(5)?
Answer: Rule 32(5) provides valuation under the Margin Scheme.
GST is paid on the difference between selling price and purchase price rather than the entire sale value.
Q6. Is GST payable on the entire resale value?
Answer: No.
Under the Margin Scheme, GST is generally payable only on the margin earned by the dealer.
Q7. Does this notification eliminate GST completely?
Answer: No.
It only exempts reverse charge liability on eligible purchases. GST on resale margin may still be payable.
Q8. Are used car dealers covered?
Answer: Yes.
Used vehicle dealers are among the most common beneficiaries of the notification.
Q9. Are refurbished electronics covered?
Answer: Generally yes, provided they qualify as second-hand goods and all conditions are met.
Q10. Is GST registration mandatory?
Answer: Yes.
The notification specifically refers to registered persons dealing in second-hand goods.
Q11. What documents should be maintained?
Answer: Purchase records, supplier details, resale records, invoices, and margin calculations should be preserved.
Q12. What happens if Rule 32(5) is not followed?
Answer: The exemption benefit may be questioned during assessment or audit.
Download PDF: Notification No. 10/2017 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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