Composition in case of second hand car dealers

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Manoj Panjabi (Querist)

10 July 2017 In view of the clarification that used car dealers have to pay gst on marginal turnover, Whether they can go for composition if their marginal turnover is less than 75 lakhs ( sales less purchases)

RAJA P M

RAJA P M (Expert)

10 July 2017 No No... can't calculatd marginal based T/O. The aggregated turn over is overall outward supplies like taxable sales, zero/excempted, Services and etc., SI, In your view 75lakhs is your marginal T/O if your actual T/O is above 75lakhs. So, it is can't optout composition scheme.

Manoj Panjabi

Manoj Panjabi (Querist)

10 July 2017 with due respect to your views i just want

Manoj Panjabi

Manoj Panjabi (Querist)

10 July 2017 with due respect to your views what the used car dealers are saying as per their consultants , as per amended rule 32 (5)

Manoj Panjabi

Manoj Panjabi (Querist)

10 July 2017 the value of supply shall be difference between the sale price and purchase price so they are being adviced to go for composition and pay 1 % on their net turnover . suggest your views

RAJA P M

RAJA P M (Expert)

10 July 2017 Yes I agreed. But, It's up to 75lakhs only. Above 75lakhs and one also you get notifications from GSTN for msg, mail and etc way. Your yearly turn over is Upto 75lakhs you can go to composition is better. But. you can decide it for assuming plus or minus in your view that is best.

Manoj Panjabi

Manoj Panjabi (Querist)

10 July 2017 What they are saying is net sales at 75 lakhs that means( sales - Purchase ) shall be value of supply so 75 lakhs ( say 5 cr sales - 4.25 cr purchase )

Manoj Panjabi

Manoj Panjabi (Querist)

10 July 2017 my doubt is whether aggregate turnover for composition shall be in above example is 5cr or 75 lakhs

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