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
03 October 2023
In both the cases the answer is yes.
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