Tax on Second Hand Goods

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my Client's running mobile shops in malls where he buys and sells second hand mobile goods. He charges GST only on the difference between the Selling Price and Purchase price but he is not getting any bills on the purchases from the individual vendors. (As per rule 32(5) of GST Rules)

Further, for the fin. year 2017-18 he was reaches the turnover around 10 Crores(i.e Sales) and declares entire turnover in the trading and profit & loss account as sales under the Income tax act.

Whereas under the GST return he had declared the value as per the said rule only 2 crores (Sales - Purchases from individual).

Now, my query is that, which turnover should i show as turnover in the GSTR-9C. (₹ 10 Crore or 2 Crore)

Please advice me. Thanks in Advance.

AI Summary

Mobile Shop Owner Seeks Guidance on Reporting Turnover Discrepancy in GSTR-9C; GST Rule 32(5) Considered A client operating mobile shops in malls deals with second-hand mobile goods, charging GST on the margin between selling and purchase prices, without receiving purchase bills from individual vendors, as per GST Rule 32(5). For the financial year 2017-18, the client reported a turnover of 10 Crores under the Income Tax Act but only 2 Crores under GST returns. The client seeks advice on which turnover to report in GSTR-9C. Responses suggest reporting 2 Crores in GSTR-9C, as turnover definitions differ between GST and Income Tax, and reconciliation between the two is necessary.