Higher levy under GST for demerit goods, exchange offers

CBEC issued draft rules on composition, valuation, transition and input tax credit for comments

Indivjal Dhasmana  |  New Delhi 

Selling goods at prices lower than prevalent market rates in exchange offers for older items, a practice popular in consumer durables and electronics sectors, might attract a higher levy than now in the goods and services tax (GST) regime. For instance, a new phone handset is sold for Rs 20,000 in exchange of an older one. But the price of the new handset, without the exchange offer, is Rs 24,000. Then, the GST would be levied on the higher amount; at present, value-added tax (VAT) is applicable on the cash component. Also, traders, dealers and distributors who have ...

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Read our full coverage on GST

Higher levy under GST for demerit goods, exchange offers

CBEC issued draft rules on composition, valuation, transition and input tax credit for comments

CBEC issued draft rules on composition, valuation, transition and input tax credit for comments Selling goods at prices lower than prevalent market rates in exchange offers for older items, a practice popular in consumer durables and electronics sectors, might attract a higher levy than now in the goods and services tax (GST) regime. For instance, a new phone handset is sold for Rs 20,000 in exchange of an older one. But the price of the new handset, without the exchange offer, is Rs 24,000. Then, the GST would be levied on the higher amount; at present, value-added tax (VAT) is applicable on the cash component. Also, traders, dealers and distributors who have ... image
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