| Question And Answer | |
|---|---|
| Subject: | 2nd hand sales goods |
| Category: | GST |
| Querist: | kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | GST Registration, GST turnover |
| Date: | March 18, 2025 |
sir,
I am dealing in second hand car and sold Eight car each valued Rs 6 lakh. And cost of each car is Rs 5 lakh. Gross Sales is Rs 48 lakh (6x 8) and value addition is only Rs 8 Lakh (1×8). As the Gross Turnover is above Rs 48 lakh which is above Rs 40 Lakh. Is liable for GST registration or turnover will be considered only 8 lakh as per rule 32(5), so not liable for registration. Please clarify it. If liable for registration. The GST will be 18% of 800000=144000 or by formula 800000×18/118= 122034
You are liable for GST registration because your aggregate turnover (Rs. 48 lakh) exceeds the threshold of Rs. 40 lakh, even though the taxable value under Rule 32(5) is only Rs. 8 lakh. Rule 32(5) reduces the taxable value to the margin (Rs. 8 lakh) for GST payment, but it does not redefine “aggregate turnover” for registration purposes. Hence, Rs. 48 lakh governs registration applicability.
GST is chargeable only on the margin (Rs. 1 lakh per car) at 18%, totaling Rs. 1,44,000 for 8 cars.