Classification of goods— In the instant case, the applicant is seeking an advance ruling in respect of the following questions.

1. Classification of second hand or used ‘Paintings’ [Section 97(2) (a)]

2. Whether for determination of the liability to pay tax on the sale of second hand or used ‘Paintings’, the applicant can apply Rule 32(5) of CGST & MGST Rules, 2017 ?

The applicant has submitted that they purchase and sell second hand or used ‘Painting’ and do not avail ITC on the purchases of such ‘Paintings’. Therefore, according to the applicant, the provisions of Rule 32(5) of CGST & MSGST Rule, 2017 are applicable to sale of such ‘Paintings’ and tax shall be paid on the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored.

since in the instant case the applicant is dealing only in second hand paintings i.e. applicant is buying second hand paintings and selling the same on their website to the highest bidder and no input tax credit is being availed on the purchases of such ‘Paintings’, therefore the Provisions of Rule 32(5) of CGST Rules will be applicable in the instant case.

Held that— The ‘Paintings are classifiable under Heading 9701 of the GST Tariff. The provisions of Rule 32(5) of CGST Rules will be applicable to applicant in respect of second hand i.e. used paintings which are purchased by them and then sold.