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second hand goods

lalit arora (3 Points)

07 January 2019

Sir I want to know second hand goods purchase from register dealer can be sell under margin scheme by register dealer .

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11 Replies

Romik Pansuriya (40 Points)
Replied 07 January 2019

yes you need to pay tax upon profit margin only

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 07 January 2019

Can You give some more details about Your business...?

Are You dealing Second Hand vehicle Dealer or Only deal second hand** business...?

1 Like

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 07 January 2019

Yes pls elaborate your query ....

pritesh (CA Final student) (7101 Points)
Replied 08 January 2019

second hand vehicle dealer?

manoj (student) (5205 Points)
Replied 08 January 2019

Bro First elaborate your quarry

lalit arora (3 Points)
Replied 08 January 2019

Sir we are dealing in refurbished mobile phone .

We purchase second hand mobile from cashify who is register dealer who purchase second hand mobile from customer.
We also purchase second hand mobile from others .
Cashify charge gst under margin scheme.
We sell these mobile after minor processing to other.

Can we charge Gst under margin Scheme. we also sell these mobile through e-commerce operator These charge Gst on normal tax rate that is 12%.

Please advice Can We charge Gst under margin scheme. When we sell these phone to another register dealer.

CA Roopa Nayak (Specialized in Indirect Taxes) (6166 Points)
Replied 08 January 2019

In respect of second hand goods, a person dealing is such goods may be allowed to pay tax on the margin i.e. the difference
between the value at which the goods are supplied and the price at which the goods are purchased. If there is no margin, no GST is
charged for such supply.

If margin scheme is opted for a transaction of second hand goods, the person selling shall not issue any taxable invoice
and the purchaser shall not claim any ITC.

Ravi SADhiyan (Practice) (4510 Points)
Replied 08 January 2019

Originally posted by : lalit arora
	Sir we are dealing in refurbished mobile phone .We purchase second hand mobile from cashify who is register dealer who purchase second hand mobile from customer.We also purchase second hand mobile from others .Cashify charge gst under margin scheme. We sell these mobile after minor processing to other.Can we charge Gst under margin Scheme. we also sell these mobile through e-commerce operator These charge Gst on normal tax rate that is 12%.Please advice Can We charge Gst under margin scheme. When we sell these phone to another register dealer.

As Per Rule 32

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 no ITC availed on such purchase

Then the value of supply shall be Difference between the selling price and purchase Price

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 11 January 2019

YES .... JUST DEPO GST ON DIFFERENCE VALUE OF SALE MINUS PURCHASE ...

Aman Singh Thakur (student) (33 Points)
Replied 11 January 2019

GST is chargeable on which the value of goods supplied and the price on which goods are purchased.The diffrence of it on which GST is chargeable.

Somnath Ata (2 Points)
Replied 17 January 2022

in case of refurbished second hand mobile phone purchased from unregistered/ registered dealer, if the business generates minor profit or no profit, is gst to be payable on the sold mobile phones?

please advise.