Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Whether we have to Charge Gst On Sales Or Profit

Ubaid Ghori (12 Points)

21 November 2019

I am A Reseller Of Second hand Car So whether i to Charge Gst to Purchaser On My Profit Or on Selling Price

Reply
Follow
Share

2 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 21 November 2019

In term of Rule 32 of CGST ,
Supplier of 2Nd hand goods has 2options
1. where the supplier has availed the ITC on inward supply , need to charge GST on Transaction (Sale ) Value
2. Where the supplier has not Avail ITC on his purchases , the value of supply shall be the Difference between the Selling price & Purchase price (Profit)

Note : Above any of option is to be excercise in beginning of FY & need to be continued till end of FY

2 Like