Valuation of Supply when Buying and Selling of Second-Hand Goods

Where a taxable supply is provided by a person dealing in buying and selling of second-hand goods i.e. used goods, or goods which have undergone minor processing which does not change their nature, and where no input tax credit has been availed on purchase of such goods, the value of supply shall be the difference between the selling price and purchase price and where the value of such supply is negative it shall be ignored.

This rule will be applicable when the selling price exceeds the purchase price which is quite unlikely in second-hand goods. This also includes buying and selling on online platforms such as OLX and Quikr.

Value of a Token, or a Voucher, or a Coupon, or a Stamp (other than postage stamp) The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is redeemable against a supply of goods or services, or both, shall be equal to the money value of the goods or services, or both, redeemable against such token, voucher, coupon, or stamp.

Example: If INR 1,500 worth of Sodexho is supplied by the taxable person, the value of supply under GST law will also be INR. 1,500.