GSTR 3B OF USED CARS DEALER

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This discussion clarifies how used car dealers operating under the GST margin scheme should report their sales in GSTR 3B. The consensus is to show the profit margin as the taxable outward supply and the original purchase price of the car as a nil-rated supply. This ensures the GST turnover aligns with the figures reported for Income Tax purposes, preventing discrepancies. It's also confirmed that the profit margin should be bifurcated into the basic price and the applicable GST.

JYOTI GOEL

JYOTI GOEL (Querist)
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16 June 2023 SIR
THE ASSESSEE DEALS IN USED CARS. HE IS UNDER MARGIN SCHEME FOR PAYMENT OF GST. IN FILING GSTR 3B ,THE OUTWARD TAXABLE SUPPLY IS PROFIT (SALE PRICE-PURCHASE PRICE OF CAR ). MY QUERY IS IF WE HAVE TO SHOW THE COST PRICE IN NIL RATED SUPPLY. BECAUSE IN IT IF WE DO NOT SHOW THE COST IN NIL RATED SUPPLY THE TURNOVER OF GST WILL BE VERY LESS AS COMPARED TO INCOME TAX; AND THERE WILL BE DIFFERNCE IN TUROVER AS PER GST AND INCOME TAX.
FOR EG. S.P. RS. 45,00,000 PURCHASE PRICE RS. 40,00,000. AND PROFIT RS. 5,00,000.
SO GST TAXABLE TURNOVER WILL BE 5,00,000. IF PURCHASE PRICE WILL BE SHOWN UNDER NIL RATED SUPPLY. IF WE DONOT SHOW IT THEN GST TURNOVER WILL BE RS. 5,00,000 AND WHEN WE FILE ITR THE TUROVER WILL BE RS. 45,00,000/- .