Page 204 - GSTL_21st May 2020_Vol 36_Part 3

450 GST LAW TIMES [ Vol. 36
7. Regarding the other question, whether ITC is allowed to be claimed
if purchases are made from the dealer whom marginal scheme is applicable, the
following are noticed :
7.1 The applicant, if he purchases the second hand goods from other
registered persons, then the applicant can claim the input tax credit on such pur-
chases if he is eligible to claim under Section 16 of the GST Act, 2017 and in that
case, he would become ineligible to apply marginal scheme for supplies of such
second hand goods.
8. In view of the foregoing, we rule as follows
RULING
(1) In the case of applicant dealing in second hand goods and invoicing
his supplies as “second hand goods”, the valuation of supply of se-
cond hand gold jewellery which are purchased from individuals
who are not registered under GST and there is no change in the
form and nature of such goods, can be made as prescribed under
sub-rule (5) of Rule 32 of the Central Goods and Service Tax Rules.
(2) In case the applicant purchases second hand jewellery from regis-
tered person, the applicant is eligible to claim input tax credit on
such inward supplies but if he claims the input tax credit against
such inward supplies he would not be eligible for the margin
scheme of valuation as prescribed in sub-rule (5) of Rule 32 of the
Central Goods and Services Tax Rules for the outward supplies of
such second hand jewellery.

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2020 (36) G.S.T.L. 450 (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 : MEGHA AGROTECH PVT. LTD.
Advance Ruling No. KAR ADRG 16/2020, dated 23-3-2020
Valuation (GST) - Transaction value - Subsidy to farmers granted by
Agriculture/Sericulture Department of State Government under Pradhan Man-
tri Krishi Sinchai Yojana (PMKSY) Scheme or any other Central/State Gov-
ernment approved schemes but disbursed to supplier - Price sole consideration
for supply - Value of supply shall include subsidies directly linked to price,
excluding subsidies provided by Government - Liability of farmer with sup-
plier for supply received by him will get extinguished only when supplier re-
ceives consideration - Immaterial from whom he actually receives amount and
amount received in only credited against liability of farmer with him -
Amount of assistance received by farmer or on account of farmer from Gov-
ernment Department having no bearing on price and value of supply made by
supplier to farmer - Not covered under Section 15(2)(e) of Central Goods and
Services Tax Act, 2017 - No question of excluding amount of assistance or sub-
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