Second hand goods Taxation

Any marketplace for used goods wherein unregistered person or dealer post the used items and sell online and these market place charge commission to both buyer & seller and some time delivery charges also:

Now my Queries are :

1) Don't these market place needs to produce GST invoice on behalf of unregistered seller along with commission fee? since payment is being made to their platform while buying such items by any individuals.

2) Within India movement are they generating E-way bill? what is the the rule for second hand items.

2) Are they paying any GST on commission fee charged ?

3) They are incurring Advertisement Exp . Website maintenance Exp so are they allowed to claim ITC on these expenses?

Replies (2)
Quick Summary
This discussion explores the tax implications of selling second-hand goods through online marketplaces. Key questions cover whether marketplaces should issue GST invoices for unregistered sellers, the mandatory generation of e-way bills for inter-state movement, GST on commission fees, and the eligibility of marketplaces to claim Input Tax Credit (ITC) on their operational expenses.

1)as per norms yes but can be averted.
2)e way bill is mandatory after a particular threshold
3)In many cases yes.
4)nature of registration is pertinent.
Hi Chanchal,

This looks like sale through e commerce operator, under GST both the seller and E commerce operator has to mandatorily register for GST subject to some exceptions.

Also, E invoicing, Eway bill and TCS provisions are applicable.

Hope this clarifies, if more clarification required please write mail at Bhavana @ lbkca.in.

Thanks
Bhavana K L
Chartered Accountant
L B K & Associates

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