Second-hand goods valuation under GST applies to resale of used gold jewellery sold after minor cleaning and polishing.

Rule 32(5) applies to taxable supplies of second-hand goods where the supplier deals in buying and selling such goods, no input tax credit has been taken on purchase, and the goods are sold as such or after only minor processing that does not change their nature. On the stated facts, second-hand gold jewellery purchased from unregistered persons, cleaned and polished without alteration in form, satisfied those conditions. The valuation is therefore to be determined under Rule 32(5), with GST payable only on the difference between the selling price and the purchase price, subject to the rule's terms.

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Issues: Whether the valuation of supply of second-hand gold jewellery purchased from unregistered persons and sold without change in the nature of the goods is to be determined under Rule 32(5) of the Central Goods and Services Tax Rules, 2017.

Analysis: Rule 32(5) applies where a taxable supply is made by a person dealing in buying and selling of second-hand goods, the goods are used as such or after only minor processing not changing their nature, and no input tax credit has been availed on the purchase. The supply of second-hand jewellery was treated as a taxable supply, and the applicant accepted that the goods were purchased from unregistered persons, no input tax credit was claimed, and the jewellery was sold in the same form after only cleaning and polishing without altering its nature or form. These facts satisfied the conditions for application of the special valuation method under the rule.

Conclusion: The valuation of supply is to be made under Rule 32(5) of the Central Goods and Services Tax Rules, 2017, and GST is payable only on the difference between the selling price and the purchase price, subject to the rule's terms.

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