Complete GST lifecycle on one platform Complete GST lifecycle on one platform
Hyper-automation Hyper-automation
Smart reports & recon Smart reports & recon
Accurate filing Accurate filing
Index

Exchange offers to become less attractive under GST

Updated on: Jul 21st, 2021

|

2 min read

3rd April, 2017 Exchange offers will become less attractive under GST as the tax will be applicable on the value of the good, and not the cash amount paid after reduction. As described in the draft valuation rules released by the government, GST will be applicable only on the price of the item. This expected to affect the consumer electronics and durables where exchange offers are common. Currently, a buyer pays VAT on the cash transaction and not on the barter value of the goods. As reported in Live Mint.

inline CTA
India’s Fastest and Most Advanced 2B Matching
Maximise ITC claims, use smart validations to correct your data and complete 2B matching in <1 minute
summary-logo

Quick Summary

Under GST, exchange offers will be less attractive as tax applies to the item's value not the cash paid, affecting consumer electronics. Currently, VAT is paid on cash transactions, not barter value. This change is expected to impact the electronics and durables market.

Was this summary helpful?
liked-feedbackliked-feedback

BROWSE BY TOPICS
Income Tax e-Filing
Last Date To File ITR For 2022-23
Income Tax Slabs FY 2023-24
Which Is Better: Old vs New Tax Regime For Salaried Employees?
House Property
Business, Professional &amp; Freelance
Which ITR Should I File?
Income Tax Refunds
Paying Tax Due
Salary Income
Capital Gains Income
Other income sources
Advance Tax
NRI
HUF
Income Tax Notices
Clear Logo
Follow us on
FacebookTwitterLinkedInGitHubInstagram
Have a query?
Support
Company
About us
Contact us
Careers
Media & Press
User reviews
Engineering blog
Clear Library
FinTech glossary
ClearTax Chronicles
GST Product Guides
Trust & Safety
Cleartax(Saudi Arabia)

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption