GST on second-hand goods

The article discusses the possible GST implications on the sale and purchase of second-hand goods.
The three parties involved in the chain of supply are the seller of new products, trader of second-hand goods, and buyer/end-user.
If the seller is registered under GST, they will issue a tax invoice to the trader charging the GST on the full sale consideration at the applicable GST rate.
If the seller is unregistered, the goods will be sold without any GST.
Traders dealing with second-hand goods can either sell them as it is or after transforming them into a different form.
They can avail the benefit of Margin Scheme under GST, where they can sell used goods paying GST only on the margin value of such goods instead of the transaction value or the sale value.
However, there are conditions that must be fulfilled to avail the benefit of Margin Scheme.
If any of the conditions are not satisfied, then the trader has to levy GST on the full transaction value and cannot avail the benefit of Margin Scheme.
The article also cites various Advance Rulings to explain the provisions.

Taxable transaction