GST on Sale of second hand goods including car, laptops, old and used bottles – All about Margin scheme for second hand goods

1.0 Introduction 

On the off chance that you are merchant in second hand merchandise and you are as yet suspicious about the GST things being what they are products, at that point this article is for you. Since GST has been executed from first July, 2017, individuals are extremely incredulous about its effect including, enrollments, invoicing, valuation and so forth. Consequently, we have composed this article to cover all the GST perspectives at a bargain of second hand merchandise. 

Give us a chance to continue on to talk about the related focuses on GST. 

2.0 Valuation for second hand merchandise 

According to the run 32 of the CGST rules, the legislature has composed an edge plan to discover the valuation for second hand merchandise. According to the plan, the estimation of supply should be the distinction between the offering cost and the price tag and where the estimation of such supply is negative, it might be overlooked. 

In basic word, offering value less price tag is known as edge conspire for second hand products. 

2.1 Conditions to profit the advantage of the plan 

There are two conditions to benefit the edge conspire for GST which are as per the following: 

Merchandise ought to be provided as it is or after a minor preparing which does not change the idea of products. 

No information assess credit (ITC) ought to be benefited on the buy of such merchandise. 

In the event that both the above conditions are satisfied then GST edge plan can be benefited. 

2.2 Example on the GST edge conspire 

Assume, Mr. An arrangements in second hand tablets and he buys the same at Rs.16,000. After minor handling, he supplies the portable PC at Rs.20,000/ - . He needs to issue the GST receipt. Compassionate exhortation? Expect impose rate 18%. 

Since, Mr. A will be a merchant in second hand merchandise and thus he may guarantee the edge conspire. As per the edge plot, GST must be paid on the contrast between price tag and deal cost. 

Subsequently, add up to GST to be paid is Rs.720 [18%*(20,000 – 16,000)]. 

3.0 No Reverse charge regardless of whether buys from unregistered merchant 

On the off chance that any second hand products merchant bargains get merchandise from an unregistered merchant (intrastate supplies), at that point additionally, no GST is to be paid under invert charge. This is because of government warning no.10/2017. 

4.0 No GST if Purchase cost is more than offering cost 

In the event that for any reason, the price tag is more than the offering cost; all things considered the negative figure is to be disregarded and no GST might be charged all things considered. 

5.0 GST enrollment for merchant of Second hand products 

GST enrollment for second hands products merchant is compulsory if the aggregate turnover in a state surpasses Rs.20 lakh. Further, the enlistment might likewise be obligatory in the accompanying cases: 

On the off chance that providing products outside the state. 

On the off chance that offering products through internet business entry. 

6.0 How to bring receipt up if there should arise an occurrence of second hand products? 

On the off chance that you are an enrolled merchant, at that point you might issue the assessment receipt expressing the expense things independently in the receipt. On the off chance that you are an unregistered merchant, at that point you may issue bill of supply rather than an expense receipt 

Read: How invoicing is under GST 

7.0 Composition conspire for Second hand merchandise merchant 

On the off chance that the aggregate turnover is under Rs.75 lakh, at that point the structure plan can be benefited by the merchant. Structure conspire is an advantage reached out to little merchant to pay assess at a concessional rate with low compliances when contrasted with typical assessable individual. 

8.0 Can second hand merchandise merchant paid expense typically and guarantee ITC 

Indeed, this is on account of edge plot is just a choice and subsequently, if the merchant needs to pay charge typically and assert ITC, at that point he can do it.