If I sell an item on OLX for 30,000, will I need to give a GST bill? Should I pay taxes?

Hi there,

This is a very interesting question.

The answer is based on three situations:-

1. Are you selling your personal products? Personal products include those products which you bought for day-to-day life usage such as furniture, electronics, vehicles, etc.
2. Are you selling your business products, for example, you are a GST registered dealer and you deal in computers? Now, on Olx, you have sold one of these computers.
3. You are a registered dealer and selling business furniture/capital assets.

Under Situation 1

The products are of personal belongings and they are not in the nature of business and thus no GST shall be paid on these. There is no need to issue the GST invoice for the same. These products were not part of a business and nor were they sold accordingly. thus no need to pay GST or invoice if sold on Olx.

Under Situation 2

The products are your business goods and you sell them regularly. This will lead to a normal business transaction and you need to pay GST on the same and issue a GST invoice.

Under Situation 3

You are selling business furniture/capital goods. This is a subjective situation. Where you have to either pay tax or reverse an ITC if already availed. In such situations, the GST treatment shall vary based on the nature of the transaction.