EXEMPTION FOR DEALERS FROM PURCHASE TAX WHO WERE DEALING IN SECOND HAND GOODS AND SELLING THE SAME ON MARGIN BASIS WITHIN THE STATE (SGST EXEMPTION)
The Goods and Services Tax Act, 2017 comes into force
with effect from 1.7.2017.
The Government of Tamil Nadu has exempted intra-State
supplies of second hand goods received by a registered person, dealing in
buying and selling of second hand goods and who pays the state tax on the value
of outward supply of such second hand goods as determined under sub-rule 5 of
rule 32 of the Tamil Nadu Goods and Services Tax Rules, 2017 from any supplier,
who is not a registered from the whole of the state tax leviable thereon under
sub-section (4) of section 9 of the Tamil Nadu Goods and Services Tax Act,
2017.
The notification came into force with effect from
1.7.2017.
(In simple the dealers dealing in old and
used second hand items need not pay purchase tax at the time of
purchase and they can pay GST (CGST AND SGST) at the time of sale. This exemption is
applicable only to registered taxpayers).
To view the Tamil Nadu Government Order please click
the link given below:
Similar Notification has been issued by the Government
of India under Central Goods and Services Tax Act, 2017 for CGST exemption.