TaxTMI 
TaxTMI 
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
GST On second hand Machine
26 Oct 2017 
7 Replies 
40116 Views Asked by
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. (AI Summary)
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. (AI Summary)