GST on the supply of second-hand goods
An overview of GST on supply of second hand goods
In this post, we will discuss GST on the supply of second-hand goods. The Finance Ministry has notified that GST applies to the difference between the selling price and the purchase price in Rule 32(5) of CGST Rules, 2017.
This notification is dated July 15, 2017.
However, in cases where the value of such supply is negative, the same shall be ignored. Further, the notification states that Central Tax or CGST is exempted from intra-state buying and selling of second-hand goods. This is in cases where the supplier is not registered since, in that case, ITC is not available on such supplies.