MY CLIENT IS DEAL IN OF SECOND HAND USED CAR
SALES AND PURCHASE
EX: HE PURCHASE CAR RS 220000 FROM UNREGISTERED PERSON AND
SALE THIS CAR TO ANOTHER PERSON RS 230000 THE MARGIN AMOUNT BETWEEN THIS
TRANSACTION IS RS 10000
ON WHICH AMOUNT HE IS LIABLE TO PAY GST???
Reply
As per Rule 32(5) of CGST Rules, 2017 Where a taxable supply is provided by a person
dealing in buying and selling of second hand goods i.e., used goods as such or
after such minor processing which does not change the nature of the goods and
where no input tax credit has been availed on the purchase of such goods, the
value of supply shall be the difference between the selling price and the
purchase price and where the value of such supply is negative, it shall be
ignored. Therefore, Taxable value will be Rs. 10,000/- in the above case.