Turnover and Value of Supply

[Guest]

Sir, I understand that the threshold limit for compulsorily registering under GST is aggregate turnover of 20 lakhs. How is this turnover determined in case of a secondhand goods dealer,? Just to give an example Assuming I have purchased all secondhand goods from gst registered dealers during the year for a total of 18 lakhs and have sold the same for 21 lakhs. What will be my aggregate turnover?... Is it 21 lakhs or is it 3 lakhs? In this case will I have to register compulsarily for GST? Warm regards.

AI Summary

GST Turnover for Secondhand Goods Dealers Based on Total Sales, Not Profit Margin; Clarified Under Section 32(5) CGST Act. A discussion on the Goods and Services Tax (GST) threshold for secondhand goods dealers centers around whether the aggregate turnover is based on total sales or the profit margin. A participant queries if a dealer purchasing goods for 18 lakhs and selling for 21 lakhs should consider the turnover as 21 lakhs or 3 lakhs. Responses clarify that the aggregate turnover for GST registration is the total sales value, 21 lakhs, not the profit margin. Different rules apply for valuation under GST and composition schemes. Clarifications indicate no GST on used items sold below purchase price, as per Section 32(5) of the CGST Act.