FREE BUSINESS TOOL · RULE 32(5)
Margin Scheme GST Calculator
GST on the margin, not the full sale. Calculate an estimate for an eligible second-hand goods transaction.
Transaction details
18% is an example. Confirm the rate for your goods and HSN.
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Your GST estimate
₹762.71
GST at 18% on a taxable margin of ₹4,237.29
- Gross margin
- ₹5,000.00
- Taxable margin
- ₹4,237.29
- CGST
- ₹381.36
- SGST / UTGST
- ₹381.35
- Margin after GST
- ₹4,237.29
- Customer pays
- ₹15,000.00
Computation summary only — not a tax invoice.
How margin GST is calculated
Margin = selling price − purchase price. For a GST-inclusive margin, GST = positive margin × rate ÷ (100 + rate). For a GST-exclusive margin, GST = positive margin × rate ÷ 100, added to the selling price.
Example: buy at ₹10,000 and sell at ₹15,000 inclusive of GST. At an illustrative 18%, the ₹5,000 margin contains ₹762.71 GST and ₹4,237.29 margin after GST. Figures are rounded to two decimals.
Check eligibility first
Rule 32(5) applies to dealers in second-hand goods sold as such, or after minor processing that does not change their nature, where no input tax credit has been availed on the purchase. It does not automatically apply to every used-goods sale.
Calculate each item separately. Supply type depends on place-of-supply rules, not just a customer’s address. Confirm eligibility, classification and the current rate with your tax adviser.
Read the CBIC valuation rules ↗From a calculation to your business books
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