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Exchange offers to become less attractive under GST

Updated on:  

08 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.

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