Page 199 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : ATTICA GOLD PVT. LTD. 445

2020 (36) G.S.T.L. 445 (A.A.R. - GST - Kar.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
KARNATAKA
Dr. Ravi Prasad M.P., Member (State Tax) and Shri Mashhood Ur Rehman
Farooqui, Member (Central Tax)
IN RE : ATTICA GOLD PVT. LTD.

Advance Ruling No. KAR ADRG 15/2020, dated 23-3-2020
Valuation (GST) - Sale of second hand goods - Difference between
Sale and purchase price - Purchase of used jewellery and sale after cleaning
and polishing them - No conversion into bullion or new jewellery - No change
in form or nature of goods - Subject to condition of invoicing them as “second
hand jewellery”, valuation of supply of second hand jewellery to be made as
prescribed in sub-rule (5) of Rule 32 of Central Goods and Services Tax Rules,
2017. [paras 6.3, 6.4, 6.5, 8]
Input Tax Credit - Purchase of second hand goods on marginal scheme
- If applicant purchases second hand jewellery from registered person, appli-
cant eligible to claim input tax credit on such inward supplies - If he claims
input tax credit against such inward supplies he would not be eligible for
margin scheme of valuation as prescribed in sub-rule (5) of Rule 32 of Central
Goods and Services Tax Rules, 2017 for outward supplies of such second hand
jewellery. [paras 7, 7.1, 8]
Ruling in favour of assessee
CASES CITED
Government of Andhra Pradesh v. Road Rollers Owners Welfare Association
— 2004 (6) SCC 210 — Referred ...................................................................................................... [Para 3]
Gurudevantt VKSSS Maryadit v. State of Maharashtra — AIR 2001 SC 1980 — Referred ............. [Para 3]
Nelson Motis v. Union of India — AIR 1992 SC 1981 — Referred ...................................................... [Para 3]
Safset Agencies Private Limited — 2019 (26) G.S.T.L. 351 (A.A.R. - GST) — Referred .................... [Para 3]
Swedish Match AB v. Securities and Exchange Board of India
— AIR 2004 SC 4219 — Referred .................................................................................................... [Para 3]
REPRESENTED BY : Shri Muniraju P.R., Chartered Accountant & DAR,
for the Assessee.
[Order]. - M/s. Attica Gold Private Limited (hereinafter called the ‘Ap-
plicant’), having GSTIN Number 29AANCA2059B1ZS, have filed an application
for Advance Ruling under Section 97 of the CGST Act, 2017 and Section 97 of the
KGST Act, 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000-00 each
under the CGST Act and the KGST Act.
2. The Applicant is a private limited company and is registered under
the Goods and Services [Tax] Act, 2017. The applicant has sought advance ruling
in respect of the following question :
(a) Whether applicant dealing in second hand goods and tax is to be
paid on the difference between the selling price and purchase price
as stipulated in Rule 32(5) of CGST Rules, 2017 if dealer purchases
used/second hand gold jewellery from individuals who are not
dealers under the GST and at the time of sale there is no change in
the form/nature of goods?
GST LAW TIMES  21st May 2020  199