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gst on exchange

manmohan baheti (student) (112 Points)

29 March 2019

a TV is costing 24000. if we exchange a old TV for it, new TV will be given for 20000. my question is will exchange of old TV will be treted as purchase by new TV suppliers, so he have to gst on that or exchange of old TV will be treated as consideration in kind so no gst will be applicable on old TV purchase , open market value of TV is known at time of sale

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4 Replies

Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 29 March 2019

even if he considers old TV as purchase, then supplier don't have to pay GST on it as there is no GST on purchase from unregistered dealer.
In either case you have to charge GST on value of new TV only and nothing is to be done for purchase of old TV

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 29 March 2019

The GST will charge on without exchange value ie on 24000/-
Book the old TV as purchase from URD .
or
make bill as per below
I assume MPR is 24000/- for TV

Cost New TV. Rs. 18750
Add : GST 28%. Rs 5250/-
Total. Rs. 24000/-

Less : Old TV. Rs. 4000/-

Net Total. Rs. 20000/-