GST issues - Credit card transactions - reselling/gifting the items to friends and relatives
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This issue is faced by many dimers.
Case1:
You buy mobile phone or any other consumer items using your credit cards.
Some you gift them, some you sell them, some you help other people to buy using your credit card.
Case2:
You buy gift cards using your credit cards.
Some you gift them, some you sell them, some you help other people to buy using your credit card.
Do you have to pay GST since you are reselling them (even though you can claim them that you have gifted them)?
I know the answer and also how to tweak it.
If I tell the answer now, you get biased by that and all replies would be revolving around that.
I would like to see three types of replies.
1)Complete legal according to GST law.
2)Some what legal and some what ambiguity of GST law or any other law..
3)Complete tweak and legal but not ethical
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My solution comes under either type 2 or 3.
If the type 1 option is nearer to my solution financially (just couple of more percentage points cost), I would as well follow type 1 option.
X
Gift tax is to be paid by the person receiving if it crosses 50k(gifts received from strangers) in cash/chq amt so things like mobile phones gifted don’t have any gift tax component. In case 1 if you sell a mobile then no GST is required as it is considered as selling used item(just for technicality you can open the box & it should be considered as used) but you need to show the amount received from selling as other income. As for buying for other people again treat that as used goods selling. Case 2 also falls in similar category as gift cards are not exactly cash/chq in the sense they cannot completely replace cash/chq.
Agreed. Perfect.No GST involved. But it is not ethical for some.
If bill of GC and Mobiles is in your name,and you are reselling, and performing trade activity, you need to pay GST and claim input credit from the invoice which you have got from amazon/FK etc
If bill is not in your name ( highly recommended ), you just need to pay income tax on the additional income, since you are just a commission agent, GST is only applicable you if your commission income exceeds 40L INR which is highly unlikely. so follow approach 2, take bill directly on buyer name, work as an intermediary
Yes but that can be avoided by treating it as used goods selling for which no GST is needed but in that case you will need to show the entire sell amount in your other income & pay tax on that so not such a good idea especially if total amt is exceeding 50k(as till that amt you can show it as gift income received from strangers & which is tax free).
@ramadesidime So you have the answer and need a problem , that makes an unusual post