Taxing ‘Second-Hand’ Goods under GST: Guidance from the ECJ
GST Law Times, (2018) Vol. 16 (September 2018)(pp. J149-J155, J161).
4 Pages Posted: 27 Oct 2018 Last revised: 18 Feb 2022
Date Written: September 27, 2018
Abstract
The Goods and Services Tax (‘GST’) regime has sought to replace the earlier indirect tax regime in a large measure. In the GST design an attempt has been made to incorporate international best-practices.
One such aspect is composition-scheme for business dealing in second-hand goods. While the GST provisions incorporate such scheme, there is not enough elaboration of its contours and a lone provision in the subordinate legislation in the sole repository of this scheme.
In this background it is only expedient to draw upon the international appreciation of the second-hand goods composition-scheme to cull out the nuances underlying such scheme.
A recent decision of the European Court of Justice exemplifies these aspects further and serves as an appropriate guidance to develop a framework for pragmatic appreciation of the scheme.
Keywords: Value Added Tax, Goods and Services Tax, GST, Second-Hand Goods
JEL Classification: H25, K34
Suggested Citation: Suggested Citation