What will be the value of taxable supply and GST payable in each of the following independent cases in accordance with the provisions of CGST Act, 2017: (iii) Ramesh is engaged in buying and selling of second-hand cars i
CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · PYQS · June 2025
What will be the value of taxable supply and GST payable in each of the following independent cases in accordance with the provisions of CGST Act, 2017: (iii) Ramesh is engaged in buying and selling of second-hand cars in Jaipur. During the month of January, 2025, he supplied a used car after some processing at ₹10,00,000 which he purchased from a customer at ₹10,50,000 and no input tax credit has been availed on such purchase.
Answer & Explanation:
Answer 2(a)(iii) As per rule 32(5) of CGST Rules, the value of supply of second-hand goods shall be the difference between the selling price and purchase price and where the value of such supply is negative it shall be ignored. Therefore, the value of taxable supply of second-hand car (₹10,00,000 - ₹10,50,000) i.e., Nil.
Topics: Goods and Services Tax (GST)
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