Gst query for second hand vehicle margin scheme

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This discussion clarifies the Goods and Services Tax (GST) calculation for dealers selling second-hand vehicles under the margin scheme. GST is applied only to the profit margin (the difference between purchase and sale price), provided input tax credit (ITC) is not claimed on the vehicle's purchase. If the margin is negative, no GST is payable. Further details and guidance can be found via the provided link.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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25 July 2021 Sir,
A second hand vehicles purchase and sales dealer (margin scheme)how to gst tax calculation procedure and maintained records in gst act.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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25 July 2021 If the dealer purchases second hand vehicles and sells them then GST will only be applicable on the difference amount provided you don't take ITC on your purchase.
If margin is negative then there is no GST