GST Margin Scheme for Used Car & Used Laptop Dealers
This query is : Resolved
03 October 2023
Respected Experts,
I would request your detailed clarification on opt in to GST Margin Scheme.
I Observed that, Used Goods Dealers can pay GST only for their Margin and not on the entire Sale Value.
Question: 1
For Eg: If Mr. A ( Used Laptop Dealer) Purchase Used Laptop for Rs. 15,000.00 from Local Market ( by Paying GST) and after minor changes he sold it as Rs. 20,000.00
As per the Margin scheme, can we pay tax for Rs. 5000.00 X 18 %? by not claiming the Input tax credit on purchases?
Question 2
If the dealer, procuring used Laptop without paying GST ( Local market) is he still eligible to pay tax under Marginal Rate?
Kindly also advise any other instructions to follow
I would request your detailed clarification on opt in to GST Margin Scheme.
I Observed that, Used Goods Dealers can pay GST only for their Margin and not on the entire Sale Value.
Question: 1
For Eg: If Mr. A ( Used Laptop Dealer) Purchase Used Laptop for Rs. 15,000.00 from Local Market ( by Paying GST) and after minor changes he sold it as Rs. 20,000.00
As per the Margin scheme, can we pay tax for Rs. 5000.00 X 18 %? by not claiming the Input tax credit on purchases?
Question 2
If the dealer, procuring used Laptop without paying GST ( Local market) is he still eligible to pay tax under Marginal Rate?
Kindly also advise any other instructions to follow
CA R SEETHARAMAN
(Expert)
03 October 2023
In both the cases the answer is yes.
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