E- invoice-2

This query is : Resolved

Quick Summary

Discussion on e-invoice applicability for sale of a motor car below WDV between registered persons. Experts clarified that e-invoicing is required if turnover limits apply, and under the margin scheme, taxable value may be NIL where the sale results in a negative margin.

CA Nidhi Kanabar

CA Nidhi Kanabar (Querist)
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11 February 2026 Hello,

I would like to know whether an e-invoice is required when a registered person sells a motor car to another registered person and the sale price is lower than the WDV.

If yes:

What is the taxable value under GST in this case?

How should the e-invoice be prepared (format and key details)?

Thank you.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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12 February 2026 Yes, e-invoice is required if supplier crosses turnover threshold, even if car is sold below WDV.

Taxable value depends on:

If ITC not availed → margin scheme applies → taxable value = sale price – depreciated value (if negative, NIL)

If ITC availed → GST payable on full sale value

E-invoice must include HSN 8703, margin scheme note, and proper taxable value as per Rule 32(5).

CA Nidhi Kanabar

CA Nidhi Kanabar (Querist)
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12 February 2026 Shall I put Rs.1 as taxable value while preparing E invoice of sale of motor car in loss?

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