24 January 2024
Dear Experts, 1 A company purchased the printer for its office usage for Rs 100000.00 plus GST Rs 18,000.00,Totally Rs 118000.00 2 The seller of the printer has deducted Rs 30,000.00 towards the used printer, which was given by the company. 3 Now the seller, has not considered this Rs 30000.00 for GST computation of New Printer 4 Whether this GST computation is correct or not 5 Pls confirm. 6 Whether the value of exchanged goods to be reduced from the newly purchased goods taxable value for GST calcualtion or not?
10 July 2024
Based on the details provided, here's an analysis of the GST computation related to the purchase of a printer and the exchange of a used printer:
1. **Purchase of New Printer:** - Cost of new printer: Rs 100,000.00 - GST on new printer: Rs 18,000.00 - Total invoice value for new printer: Rs 118,000.00
2. **Exchange of Used Printer:** - The seller deducted Rs 30,000.00 for the used printer provided by the company.
3. **GST Computation:** - When a used printer is exchanged for a new printer, GST implications arise under the provisions of GST law.
4. **Treatment of Exchange in GST:** - As per GST rules, when goods are exchanged, the value of the exchanged goods should generally be considered for GST computation unless specific conditions for exemption are met (such as under Section 18(6) of the CGST Act for goods exchange where the taxable person is not required to pay GST on the supply of goods on which input tax credit has been availed).
5. **Correctness of GST Computation:** - If the seller has not considered the Rs 30,000.00 deducted for the used printer in the GST computation of the new printer, this could potentially be incorrect under GST regulations. - Typically, the GST computation on the new printer should be based on the actual consideration paid, which includes any adjustment for the value of the exchanged used printer.
**Value of Exchanged Goods in GST Calculation:** - Yes, as per GST rules, the value of the exchanged goods (in this case, the used printer) should generally be reduced from the taxable value of the newly purchased goods (new printer) for GST calculation purposes.
### Conclusion:
Based on the information provided:
- It appears that if the seller has not considered the Rs 30,000.00 deduction for the used printer in the GST computation of the new printer, there might be a discrepancy. - The correct approach would typically involve reducing the taxable value of the new printer by the value of the used printer exchanged, and then applying GST on the net taxable value. - It's advisable to review the GST invoice or consult with a GST expert to ensure compliance with GST rules and correct any potential errors in the GST computation process.
CAclubindia
