Yes, you can do so without any difficulty.
Please feel free to call/ revert in case you need more clarity
Thanks and regards
Abhishek Dugar
CA CS B.Com
Can I legally sell inventory I have procured without invoice?
Say, I start an e-commerce site and i have in stock inventory which i have procured from someone without any invoice(like old TV sets ). can i sell it with no problems to my customers provided I give them the full invoice with appropriate GST on it?
Asked 7 years ago in Service Tax
so will the tax department ever ask how I procured all these inventory. since i'm selling this at a much higher rate than i procured? I'm basically repairing second hand goods and restoring them and then re-selling them
Asked 7 years ago
for example I'm buying some junk TV for Rs 100, and selling it for Rs 7000/- to my customer.
Asked 7 years ago
Hi,
In case of scrutiny, or in case you are liable for audit, you will be required to provide the details of your purchases. such as from whom the product was purchased, the price, date and the nature of product.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LLB
There is no problem in your margin , sale price depends on you and buyer, only in case of prices covered under Maximum selling price announced by govt. for essential products are subject to maximum price band.
thus pay GST on reverse charge /forward charge as the case may be and pay GST on sales price.
@Lalit Bansal, So What you're saying is.... that i can pay GST on the sale price of a TV I'm selling at Rs 7000/- and not care about reporting to the tax authorities that i purchased for a negligible amount in cash? (say Rs 100/-)
Asked 7 years ago
like i said i'm buying cheap TVs for Rs 100/- in cash and selling it for Rs 7000/- via e commerce website
Asked 7 years ago
right and legality and ownership matters under IPC not under GST ,
same as in your case in exchange model seller got old devices and sell as scrap in very low price or as the case may be ,
if you comply rules and regulation of GST ACT then in my view no problem arise in future at least under GST
one more thing if you buy old devices from absolute owners means not from a person who run such business like Scrap dealers then even reverse charge under GST not applicable because its not a Supply as per GST supply definitions, same view confirmed by department in case of jewelry sale by ladies to jewelers
Hello,
In your case you will be required to pay GST on the amount of your margin i.e 6900/- in your example.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hello,
In such a case you only need to pay tax on your margin. Better select composition scheme as the tax rate there is 1%.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LLB
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