As per rule 32(5) of the Central Goods and Services Tax (CGST) Rules, 2017, the buying and selling of second-hand goods will not attract Goods and Services Tax (GST) if sold at a price cheaper than the purchase price.
According to the Margin scheme if the value of the pre owned goods are negative and are sold at loss then tax is not payable. Rule 32(5) of the CGST Rules is a special sub-rule for the person buying and selling second-hand goods (for instance used cars, television and mobiles).
“This has been done to avoid double taxation on the outward supplies made by such registered person since such person operating under the Margin Scheme cannot avail input tax credit on the purchase of second-hand goods,” the Finance Ministry said in a statement schweizer-apotheke.de.
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