battery given for exchange value of rs 1000.
battery purchased in 2016
net paid after exchange discount rs 4000
11 Replies
Ankush
(Student)
(1369 Points)
Replied 06 November 2020
No I'm giving for exchange and registered under gst. do I need to pay gst on 1000?
Shivam RC
(Student)
(23683 Points)
Replied 06 November 2020
GST shall be levied on the "OPEN MARKET VALUE" i.e. Rs. 5,000 ( 4,000 + 1,000 for the old battery ).
As per Rule 27 of the CGST Rules 2017, ( Where Consideration is not wholly in money ), the Value of Supply shall be :
(i). Open Market Value.
(ii). Like Kind and Quality
(iii). 110% of Cost
(iv). Consideration in Money + Money equivalent to consideration not in money.
So the Open Market Value of the Battery i.e. Rs. 5,000 will be the Transaction Value and GST will be paid accordingly.
Regards,
Shivam RC.
As per Rule 27 of the CGST Rules 2017, ( Where Consideration is not wholly in money ), the Value of Supply shall be :
(i). Open Market Value.
(ii). Like Kind and Quality
(iii). 110% of Cost
(iv). Consideration in Money + Money equivalent to consideration not in money.
So the Open Market Value of the Battery i.e. Rs. 5,000 will be the Transaction Value and GST will be paid accordingly.
Regards,
Shivam RC.
Ankush
(Student)
(1369 Points)
Replied 06 November 2020
I'm giving the battery for exchange for 1000 how much do I have to pay gst on
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 06 November 2020
Yes GST need to be paid on Rs. 5000/-.
You can make the bill in following manner
Value of Battery = 5000/-
GST 900/-
Total. 5900/-
Less :Exchange. 1000/-
Net Value. 4900/-
You can make the bill in following manner
Value of Battery = 5000/-
GST 900/-
Total. 5900/-
Less :Exchange. 1000/-
Net Value. 4900/-
pankaj
(Chartered Accountant)
(106 Points)
Replied 06 November 2020
Better to give your invoice of old battery to seller and charge 18% Gst payable
and take invoice from seller of new battery 28% and take ITC
and take invoice from seller of new battery 28% and take ITC
Ankush
(Student)
(1369 Points)
Replied 07 November 2020
So we need to charge gst on 1000 and the new battery seller on 5000?
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 09 November 2020
CA Pankaj
The battery vendor (Supplier) is taking old battery from customer so it's inward supply for supplier from URD ,& the same is Exempted .
Cannot get your reply " Seller (Customer) who is Unregistered ,can charge GST ...
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 09 November 2020
CA Pankaj
The battery vendor (Supplier) is taking old battery from customer so it's inward supply for supplier from URD ,& the same is Exempted .
Cannot get your reply " Seller (Customer) who is Unregistered ,can charge GST ...
pankaj
(Chartered Accountant)
(106 Points)
Replied 09 November 2020
Pankaj Rawat ji
In above query both are registered
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 10 November 2020
dear ca pankaj
but i cannot find the same in the query ask by querist
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