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.

AI Summary

GST on Second-Hand Goods: Tax Applies Only on Profit Margin as per Rule 32(5) of the CGST Act A discussion on a forum addressed the issue of invoicing for second-hand goods under GST, focusing on the taxability of the margin amount as per Rule 32(5) of the CGST Act. When a product is sold for 10,000 with a purchase price of 9,000, GST is applicable on the 1,000 margin. The responses advised that the invoice should follow standard procedures, detailing the calculation of the 1,000 transaction value and indicating the GST applied. It was also suggested to include full particulars of the purchase invoice and specify that the GST rate and amount apply only to the margin.