kaushal mistry (30 Points)
29 July 2023We are selling company old furniture and electronics to local person.
My question
Nikita Agarwal
(Semi Qualified CA)
(3208 Points)
Replied 29 July 2023
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 29 July 2023
Musrath Shaik
(175 Points)
Replied 31 July 2023
The applicability of GST (Goods and Services Tax) on the sale of old furniture and electronics depends on whether the transaction falls under the definition of "Supply" as per GST law and the nature of the transaction. Here are some key points to consider:
Supply under GST: GST is applicable to any supply of goods or services made for a consideration in the course or furtherance of business. So, if the sale of old furniture and electronics is part of your business activities, GST may be applicable.
Second-Hand Goods: The GST law provides a specific provision for the sale of second-hand goods by registered persons. As per this provision, if a registered person sells second-hand goods, the seller has an option to pay GST on the margin of the sale value. In simple terms, GST is levied only on the difference between the selling price and the purchase price (i.e., the profit margin). This provision is available only if the goods being sold were purchased in the past and were used.
For further more detailed information on this topic visit: Clarifications regarding applicability of GST on certain services
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sabyasachi mukherjee
(27579 Points)
Replied 03 August 2023
CAclubindia
