This notification exempts intra-State supplies of second-hand goods received from unregistered persons by registered dealers engaged in buying and selling of such goods. The exemption applies where compensation cess is paid on the margin value under Rule 32(5) of the CGST Rules. It avoids double taxation and eases compliance for second-hand goods dealers.

Issued for earlier notification?
Yes — issued under section 11 of the GST (Compensation to States) Act, 2017.