Circular No. 76/50/2018-GST dated 31st December, 2018 provides clarification on issues in case of sale of used vehicles, seized and confiscated goods, old and used goods, waste and scrap by Government departments.
1. Is supply of used vehicles, seized and confiscated goods, old and used goods, waste and scrap by Government departments are taxable?
Yes, it is taxable.
2. Is it taxable under Reverse Charge Mechanism (RCM) or Forward Charge Mechanism (FCM)?
3. When Government departments are required to take registration?
4. How is Aggregate Turnover Calculated?
Section 2(6) of CGST Act, 2017 defines Aggregate Turnover as “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same PAN, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;
It is to be noted here that while calculating Aggregate Turnover, SUPPLIES MADE ON WHICH RECIPIENT IS LIABLE TO PAY TAX UNDER RCM, shall also be INCLUDED.
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