Reverse Charge on Used Goods Purchased from Government
Reverse Charge on Used Goods Purchased from Government
Taxation on a reverse charge means tax liability rests with the recipient of goods or services, and not with the supplier. GST is levied on reverse charge basis for certain transactions specifically mentioned by the Government. In a recent notification dated 13th October 2017, the Government has included the purchase of vehicles, seized and confiscated goods, old and used goods, waste and scrap by a registered person from the Central Government, the State Government, Union territory or a local authority under transactions that attract a reverse charge. The notification relating to the inclusion is listed below:
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 37 /2017- Integrated Tax (Rate)
New Delhi, the 13th October 2017
G.S.R. (E).- In exercise of the powers conferred by sub-section (3) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.4/2017- Integrated Tax (Rate), dated the 28th June 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 669 (E), dated the 28th June 2017, namely:-
In the said notification,-
(i) after S. No. 5 and the entries relating thereto, the following serial number and the entries shall be inserted, namely:
| Sl. No. |
Tariff item, subheading, heading or Chapter |
Description of Goods | Supplier of goods |
Recipient of supply |
| (1) | (2) | (3) | (4) | (5) |
| 6. | Any Chapter | Used vehicles, seized and confiscated goods, old and used goods, waste and scrap |
Central Government, State Government, Union territory or a local authority |
Any registered person |
[F. No. 354/117/2017- TRU (Pt. III)]
(Ruchi Bisht)
Under Secretary to Government of India
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