GST On second hand Machine

[girish nagareaj]

Hi Experts,

I am planning to Purchase second hand Envelope Making machine. Does this attract GST? if yes, can you please let me know whats the percentage?

Awaiting for your reply.

Regards,

Girish

[Rajagopalan Ranganathan]

Sir,

According to rule 32 (5) of CGST Rules, 2017 "Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored.

Envelope making machine will fall under Heading 8441 and attract 9% tax vide Sl. No. 333 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended.

[KASTURI SETHI]

Yes. It is supply. Since GST is on value, tax is to be paid on value. If it is new, value will be higher and if it is second hand, value be reduced as per the usage. So tax rate remains the same whether old or new. Rate is easily available on Google or department site.

[girish nagareaj]

Thanks a ton for you reply Sir. I am from Bangalore, I am planning to buy this Pocket envelope making machine from Gujarat. So it will be 18%(CGST@9%+SGST@9%) am I correct? If not, can you please correct me? I am planning to use this machine for myself. I am not a dealer.

Awaiting for your reply.

Regards,

Girish

[KASTURI SETHI]

Yes. You are right.

[Ganeshan Kalyani]

With the introduction of the GST the rate on tax on product is same across India. So a buyer can purchase within the State to save transportation cost. Thanks.

[Nash Industries I Pvt Ltd]

the tax is on the supply of goods and not whether it is new or old.

To determine, the value of the goods for the purpose of levy - it is important whether it is new or old.

The envelope making machine falls under HSN 8472.

It attracts 18% GST as per the 23rd GST council recommendations for which notification is expected.

Regards

S.Ramaswamy

[vidyanand kore]

Hello Sir is there any sale tax or GST for selling of Old Excavator if yes How much

AI Summary

GST on second hand goods: tax applies on value or margin when no input tax credit, and rate follows HSN.
Under Rule 32(5) of the CGST Rules, 2017, a taxable supply of second hand goods by a dealer who did not claim input tax credit is valued at the difference between selling and purchase prices (with negative margins ignored). The envelope making machine must be classified under the appropriate HSN heading to determine the applicable GST rate; the used nature of the machine does not alter its status as a taxable supply and State uniformity of GST rates applies.