Illustration required in Rule 6(5) of Determination of Value of Supply Rules

Rule 6(5) of draft GST Determination of Value of Supply Rules provides for method of valuation in case of supply of second hand goods.

(5) Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e. used goods as such or after such minor processing which does not change the nature of the goods 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.

Suggestion

To enable the public at large to understand an illustration be inserted in this rule as done in case of various other rules.

Source ICAI Suggestions on GST Rules Submitted to Govt of India