The case involves the Advance Ruling Authority (AAR) determining ...

Margin Scheme not applicable for scrap items like Iron, Lead Acid Batteries, Aluminium, Steel, Copper, Brass, Plastic. No benefit for intra or inter-state supply.

June 5, 2024

Case Laws     GST     AAR

The case involves the Advance Ruling Authority (AAR) determining the applicability of the Margin Scheme u/r 32(5) of the CGST Rules, 2017 to goods such as used Iron Scrap, Lead Acid Batteries, Aluminium utensils, Steel utensils scrap, copper scrap, Brass utensils, waste plastic bags, and plastic PET bottles. The AAR held that these items do not qualify as Second Hand Goods as they are essentially scrap to be consumed or melted for manufacturing new items, thus changing their nature. Consequently, the applicant is deemed ineligible to operate under the Margin Scheme. As a result, the benefit of the Margin Scheme is not available for either intra-state or inter-state supply of goods due to the nature of the goods involved.

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