Question 1. Is Auction of scrap made by Government Department is taxable supply under GST.

Question 2 - Is it practically possible to take a registration only for just scrap sales which is also to be happen sometimes like once in 3-5 year, is any notification for exempted such activity.

Reply— Vide notification No. 36/2017-Central Tax (Rate) dated 13.10.2017, it has been notified that intra-State and inter-State supply respectively of used vehicles, seized and confiscated goods, old and used goods, waste and scrap by the Central Government, State Government, Union territory or a local authority to any registered person, would be subject to GST on reverse charge basis as per which tax is payable by the recipient of such supplies,. If recipient of such goods are registered persons, then GST registration is not mandatory for government department. Refer circular no. 76/50/2018 dated 31.12.2018.

However the respective Government departments (i.e.Central Government, State Government, Union territory or a local authority) shall be liable to get registered and pay GST on intra-State and inter-State supply of used vehicles, seized and confiscated goods, old and used goods, waste and scrap made by them to an unregistered person subject to the provisions of sections 22 and 24 of the CGST Act.