GST amount query

Mr. X is a car dealer bought car from Mr. A(user) for Rs. 9 lakh and sold the same car to Mr. B dealer with valid gst no. for Rs. 9.60 lakh, and incurred 10000 as other expenses.

How much Gst will Mr.X have to pay and how much will be available for ITC?


Thank you in advance.
Replies (2)
Quick Summary
This discussion addresses a car dealer's GST query. The dealer purchased a used car for Rs. 9 lakh and sold it for Rs. 9.60 lakh, incurring Rs. 10,000 in expenses. The core question is how much GST the dealer must pay and what Input Tax Credit (ITC) is available. The consensus is that GST will be paid on the margin (Rs. 60,000), with ITC available for the GST paid on the initial purchase via reverse charge mechanism. Additionally, GST on the Rs. 10,000 expenses will be payable, with ITC limited to the margin's GST.

1. Mr. X on purchase of 2nd hand vehicle will have to pay GST on reverse charge and same can be availed as ITC while setting off output liability
2. Mr. X will have to pay GST on subsequent sale as regular sale i.e. on 9.6lacs
3. ultimately he'll pay GST on value addition of 60k as he'll get benefit of RCM ITC
He will pay gst on margine price because who holding a valid gst no.
service gst on Rs.10000/- incurred by him.
His ITC limited to margine gst only.

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