Margin scheme for car dealer
This query is : Resolved
09 July 2021
Dear sir,
Our car dealer sells used car where such used cars are purchased from unregistered person as well as registered person under GST.
Question. Can we opt for margin scheme for supply taken from unregistered person and apply normal valuation for car purchased from registered person and avail the ITC on it.
Hence my final doubt is that, is both valuation allowed for this car dealer ?
One car for valuation under 32(5) and one car for valuation under sec 15.
Thanks in advance.
Our car dealer sells used car where such used cars are purchased from unregistered person as well as registered person under GST.
Question. Can we opt for margin scheme for supply taken from unregistered person and apply normal valuation for car purchased from registered person and avail the ITC on it.
Hence my final doubt is that, is both valuation allowed for this car dealer ?
One car for valuation under 32(5) and one car for valuation under sec 15.
Thanks in advance.
CA R SEETHARAMAN
(Expert)
09 July 2021
18% GST applicable on sale value of used cars.
Margin scheme applicable only for owners of the car.
Both valuation not allowed for car dealers.
ITC can be claimed on purchase from registered person.
Margin scheme applicable only for owners of the car.
Both valuation not allowed for car dealers.
ITC can be claimed on purchase from registered person.
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