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GST Margin Scheme

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Deepali

25 Points Posted on 25 August 2021

I have a client who is dealing in second hand laptops it purchases laptops from unregistered individuals and after small modification/repairs sell to individuals/dealers.
If anyone has invoice format for margin scheme dealer please share
and please also guide how to account for gst

Replies (2)

Quick Summary

This discussion clarifies the application of the GST Margin Scheme for businesses dealing in second-hand goods, such as laptops purchased from unregistered individuals. It explains that GST is applicable only on the profit margin (selling price minus purchase price) when input tax credit was not claimed on the original purchase, referencing Rule 32(5) of the CGST Rules 2017. Guidance on the correct invoice format, as per Rule 46 of the CGST Rules 2017, is also provided.

prasad Nilugal

GST Practitioner & Accounts

8994 Points Posted on 25 August 2021

GST applicable on Margin value ( sales - purchase ) , for second hand goods , where the input tax credit has not been taken earlier on purchased goods . refer Rule 32(5) of the CGST rules 2017 .
For Invoice format you have to refer Rule 46 of the CGST rules 2017 .
please confirm with others also .