Planning to buy a new phone through exchange offer? Well, you might just change your decision because this can cause an extra expense rather than saving a little. Courtesy: the GST Bill which is still under scrutiny.
The draft valuation of this Bill was released on the 1st of April. According to the draft, the tax is applicable not just on sale, but also on exchange and barter. In a situation where the supply of goods is ‘not wholly in money’, the worth of the product will be its open market value. In simple words, if one buys a phone worth Rs.24000, for Rs.20000, with an exchange offer, the GST will be levied on the original amount, i.e. Rs.24000 and not on Rs.20000.
Though the pros and cons of this bill are many, exchange offers will definitely not be a great saving option with its implementation.