Question26: My firm tractor dealer .While purchasing the tractor old tractor is exchanged and then old tractor is again sold. Whether sale of old tractor attracts GST. However while purchasing the old tractor bearer note is taken seller in which purchaser name is not mentioned but payment is adjusted on this behalf and this old tractor is when sold in bearer note name of purchaser is old prescribed please guide me

Answer: Your transaction involved two legs same are as follow

1st point you are getting old tractor in exchange of new in addition to the cash payment .In this case you have to pay tax on full value because the value of the tractor is considered as consideration consideration can be taken in kind.)

Please see Rule 27 of CGST Rules for valuation

2nd point When the old tractor is sold it is a fresh transaction therefore you will have to charge tax on it.

Please see section 7 of CSGT Act this section no where make any difference in the definition of supply whether the sale transfer leasing etc of goods is of the goods purchased or otherwise procured.

Suppose if some goods are received as gift or donation and it is sold by you even then you will have to charge tax

Note Please claim exemption under notification10/17 dated 28/6/17 available do dealer of second hand goods . (Reply Dt. 03/01/2018)