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

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

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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 transaction.

Hope this answers your query. If you have any other queries you can mail us at rohit@businesshelpers.in and also visit our website Business Helpers | Accountants, GST and Income Tax Consultants for various other info.

 
 

Disclaimer:-
Do take advise of a professional consultant before taking any big financial step. There could be errors in this blog. We are not liable for any harm to you if any info mentioned here is used. This info is not meant to be used as legal opinion. We would love your feed back and advises/errors related to this blog. Please do contact us at rohit@businesshelpers.in. Thank You for your kind support.

This information is being provided to you on businesshelpers.in. Business Helpers is an Accounting service provider and GST and Income Tax Consultant. Do check out our pricing and plans in the link here.

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