Mr A is dealer of Mahindra & Mahindra tractor. He sale new tractor to customers and also purchased old tractor from them. My quistion is 1. Sale of old (second hand) tractor is taxable under gst and if yes in which hsn code and rate. 2. In GSTR1 and GSTR3B IN which column we show old tractor sale.

Reply—1) As per Rule 32(5) of the CGST Rules, 2017, 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 the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored.

HSN code — 8701

Rate of tax — 12%

2) While filing GSTR-3B and GSTR-1, this transaction is required to be shown as normal outward supply.