invoicing for Second Hand goods sold

[VIGNESH]

Sir in case of Second Hand Goods sold the taxability is on margin amount as per Rule 32(5) of the CGST ACT, if suppose a product Sold for ₹ 10,000/- where the purchase price was ₹ 9000/- then Tax on ₹ 1000/- need to be paid. My Query 1. if the product sold to a Registered Dealer how to show in the invoice the above detail.

[Rajagopalan Ranganathan]

Sir

In my opinion, the procedure for issuing the invoice is the normal procedure to be followed in the case supply of goods in the normal circumstance. The only difference is you have to show how the transaction value of ₹ 1000/- has been calculated and pay gst on such transaction value calculated..

[KASTURI SETHI]

I agree with the reply of Sh.Ranganathan, Sir. Also mention full particulars of purchase invoice on the body of tax invoice..

[Shilpi Jain]

In this invoice you will have to mention rs. 1000 as the taxable value. Also agree with Rajagopalan sir's point.

[Ganeshan Kalyani]

Against 9000 gst rate will be 0 in the invoice and tax also be 0. As against 1000 tax rate and tax amount both will be shown.

AI Summary

Tax on margin for second hand goods: invoice must state margin as taxable value and show calculation and purchase details. Tax on resale of second hand goods is payable only on the margin; invoices to registered recipients must state the margin as the taxable value, disclose the calculation method, include full particulars of the original purchase invoice, and show tax rate and amount on the margin component while indicating zero tax against the purchase component.