01 August 2018
Dear All, Background: There is a registered auto dealer (new cars) who is also engaged in purchase and sale of second hand cars. Query1: can he take benefit of margin scheme and any intimation to the department or mention of the same on invoice is required. If yes Query2: Can he collect GST from customer or it has to be like composition scheme? Say purchased a vehicle for 1,00,000 sold for 1,10,000 Margin 10,000 so amount to be collected from customer should be 1,10,000+1800 (say GST rate on margin is 18% so 10,000 X 18%) or else it should be 1,10,000 only? In case it can be/ has to collected separately than Query 3: will it not disclose the margin to the customer and indirectly hamper the business? Query 4: can we skip the invoicing part?
reference to sections/rules number of act will add greater value to your reply.
CAclubindia
