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second hand goods

Others 4020 views 11 replies
Sir I want to know second hand goods purchase from register dealer can be sell under margin scheme by register dealer .
Replies (11)
yes you need to pay tax upon profit margin only
Can You give some more details about Your business...?

Are You dealing Second Hand vehicle Dealer or Only deal second hand** business...?
Yes pls elaborate your query ....
second hand vehicle dealer?

Bro First elaborate your quarry

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.

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.

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  

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

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.

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.


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