Page 202 - GSTL_21st May 2020_Vol 36_Part 3

448 GST LAW TIMES [ Vol. 36
terms of the provisions contained in Section 9(4) of the CGST
Act, 2017.
2. On further examination, it is felt that the issue needs to
be clarified.
3. Section 9(4) of the said Act mandates that tax on sup-
ply of taxable goods (gold in this case) by an unregistered sup-
plier (an individual in this case) to a registered person (the jewel-
ler in this case) will be paid by the registered person (the jeweller
in this case) under reverse charge mechanism. This provision,
however, has to be read in conjunction with section 2(105) read
with section 7 of the said Act. Section 2(105) defines supplier as a
person supplying goods or services. Section 7 provides that a
supply is a transaction, for a consideration by a person in the
course or furtherance of business.
4. Even though the sale of old gold by an individual is for
a consideration, it cannot be said to be in the course or further-
ance of his business (as selling old gold jewellery is not the busi-
ness of the said individual), and hence does not qualify to be a
supply per se. Accordingly, the sale of old jewellery by an indi-
vidual to a jeweller will not attract the provisions of section 9(4)
and jeweller will not be liable to pay tax under reverse charge
mechanism on such purchases. However, if an unregistered
supplier of gold ornaments sells it to registered supplier, the tax
under RCM will apply”.
(c) The Learned Representative stated that the applicant is presently
paying taxes on the entire value without availing marginal scheme,
but intends to avail the benefit of marginal scheme and hence ap-
plied. He stated that the applicant has advertised himself in media
that he is purchasing old used jewellery and since he is selling the
same as it is, i.e. after cleaning and polishing, without changing the
nature of the ornament, he would be dealing only in second hand
goods and hence not a dealer in first hand goods and hence would
be eligible to utilise the benefit of marginal scheme for valuation of
supply.
Findings & Discussion :
5. At the outset we would like to make it clear that the provisions of
CGST Act, 2017 and SGST Act, 2017 are in pari materia and have the same provi-
sions in like matter and differ from each other only on a few specific provisions.
Therefore, unless a mention is particularly made to such dissimilar provisions, a
reference to the CGST Act would also mean reference to the corresponding simi-
lar provisions in the KGST Act.
6. The application for advance ruling and the arguments made by the
applicant and also the submissions made by the Learned Representative during
the time of hearing were all verified and the issues that needs to be addressed is
related to whether the applicant is eligible to utilise the sub-rule (5) of Rule 32 of
Central Goods and Services Tax Rules, 2017.
6.1 Rule 32 of the CGST Rules, 2017 reads as under :
“Rule 32. Determination of value in respect of certain supplies. -
(1) Notwithstanding anything contained in the provisions of this Chapter,
the value in respect of supplies specified below shall, at the option of the
supplier, be determined in the manner provided hereinafter.
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