USED LEAD ACID BATTERIES QUALIFY FOR GST MARGIN SCHEME: RAJASTHAN AAR CLARIFIES
RAJASTHAN AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX
Case Title- M/s Shambhu Traders Private Limited
(GST AAR RAJASTHAN)
Advance Ruling No. RAJ/AAR/2018-19/35
Date of Judgment/Order- 15th Febrary 2019
IMPORTANT PARAGRAPHS
Para No. 1. SUBMISSION AND INTERPRETATION OF THE APPLICANT:
a. The Applicant is engaged in the business of selling used lead acid batteries to various manufacturers.
b. The Applicant is registered with the jurisdictional authorities under the Rajasthan Goods and Service Tax Act, 2017 (“Rajasthan GST Act, 2017”) bearing GSTIN No. 08AAFCS9741J1ZU.
c. The Applicant is operating under the Margin Scheme notified under Rule 32(5) of the Central Goods and Service Tax Rules, 2017 (“CGST Rules”).
d. The Applicant purchases these used lead acid batteries from unregistered suppliers in small quantity (50 to 100 kg approximately]……………………….
Para No. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
1. When the Applicant is operating under the Margin Scheme notified under Rule 32(5) of the Central Goods and Service Tax Rules, 2017 (“CGST Rules, 2017) by selling the used lead acid batteries to other manufacturers whether such used lead acid batteries qualify as ‘second hand goods’ and thus covered under the Margin Scheme notified under Rule 32(5) of the CGST Rules, 2017?
2. When the Applicant is selling goods under the Margin Scheme notified under Rule 32(5) of the Central Goods and Service Tax Rules, 2017. The Tax on Outward Supply under the Margin Scheme would be qualified under which of the following heading in GSTR-3B in following cases:-
a) When Applicant selling the goods within the state?
b) When Applicant selling the goods outside the state?
RULING
- The used lead acid batteries qualify to be second hand goods. Accordingly, the Applicant dealer is entitled to operate under the Margin Scheme in respect of the used lead acid batteries.
- The query raised by the applicant is not specified in Section 97(2) of CGST Act/RGST Act, 2017, therefore, no advance ruling is given.
- The Rule 32(5) of the CGST Rules, 2017 which provides for Margin Scheme in case of intra-state supplies shall also be applicable in case of inter-state supplies. The Applicant is entitled to make inter-state supplies of used lead acid batteries while operating under the Margin Scheme.
