Notification No. 10/2017 - Central Tax (Rate): CGST exemption for dealers operating under Margin Scheme notified under section 11 (1)

New Tax Exemption: Starting July 1, 2017, the Central Government has granted a tax exemption on intra-state purchases of second-hand goods for registered businesses. This applies to dealers who buy and sell second-hand goods and pay central tax on the value of their outward supplies.

Public Interest: The exemption, issued under section 11 of the C Act, 2017, aims to promote commerce in second-hand goods while benefiting registered businesses. Recommendations: The decision came following recommendations from the Council, with the government deeming it necessary for the public interest.

Unregistered Suppliers: The exemption specifically covers transactions from unregistered suppliers, sparing registered businesses from central tax liabilities. Compliance: Registered businesses must adhere to the valuation guidelines outlined in sub-rule (5) of rule 32 of the Central Goods and Services Tax Rules, 2017.

Effective Date: The exemption is effective from July 1, 2017, providing immediate relief to eligible businesses. Administrative Note: The notification, signed by Mohit Tewari, Under Secretary to the Government of India, signifies an important fiscal measure to support second-hand goods trade in the country.