Purchase of Old Vehicles by a Composition Dealer From Government DepartmentTaxability Under RCMPrayag Narain

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The Tax Publishers GST--Reverse Charge Mechanism Purchase of Old Vehicles by a Composition Dealer From Government Department--Taxability Under RCM Prayag Narain The present article aims at analysing the issue as to whether purchase of old vehicles by a composition dealer from Government department or unregistered person chargeable to tax. 1. Introduction Section 9 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") is charging section. Sub-section (3) of section 9 empowers the Government to specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. In exercise of the above powers, the Central Government has issued Notification No. 4/2017-Central Tax (Rate), dt. 28-6-2017 and Notification No. 4/2017-Integrated Tax (Rate), dt. 28-6-2017, to provide that in respect of the goods specified in the Table appended to Notification, the receiver of supply of the said goods shall be liable to pay tax on reverse charge basis. S. No. 6 was inserted in the above Table by Notification No. 36/2017-Central Tax (Rate), dt. 13-10-2017, which reads as under: SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Reverse Charge Mechanism

Purchase of Old Vehicles by a Composition Dealer From Government Department--Taxability Under RCM

Prayag Narain

The present article aims at analysing the issue as to whether purchase of old vehicles by a composition dealer from Government department or unregistered person chargeable to tax.

1. Introduction

Section 9 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") is charging section. Sub-section (3) of section 9 empowers the Government to specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

In exercise of the above powers, the Central Government has issued Notification No. 4/2017-Central Tax (Rate), dt. 28-6-2017 and Notification No. 4/2017-Integrated Tax (Rate), dt. 28-6-2017, to provide that in respect of the goods specified in the Table appended to Notification, the receiver of supply of the said goods shall be liable to pay tax on reverse charge basis.

S. No. 6 was inserted in the above Table by Notification No. 36/2017-Central Tax (Rate), dt. 13-10-2017, which reads as under: