In this post we will be discussing about GST on the supply of second-hand goods. The Finance Ministry has notified that GST is applicable on the difference between the selling price and the purchase price in terms with Rule 32(5) of CGST Rules, 2017.

This notification is dated July 15 2017.

However, in cases where the value of such supply is negative, the same shall be ignored. Further, the notification states that Central Tax or CGST is exempted in case of intra-state buying and selling of second hand goods. This is in case where the supplier is not registered since in that case, ITC is not available on such supplies.