GST on Second Hand Mobile

Great questions, Johri! Let me clarify the GST treatment and reporting for second-hand mobiles under the Margin Scheme:

1) How to report this in monthly GST Return?

• When you opt for the Margin Scheme, GST is payable only on the margin (i.e., Rs. 3,000 in your example).

• In GSTR-1 (Outward Supplies), you will report the total value of supply as Rs. 15,000 (full sale price), but the taxable value for GST calculation will be Rs. 3,000 (margin).

• You must select the appropriate supply type for second-hand goods under margin scheme (usually under a specific code in GSTR-1).

2) In GST 3B Return where to show 15,000 amount and 3,000 taxable value?

• In GSTR-3B, under Table 3.1(a) (Outward Taxable Supplies), you should report the full value of sales (Rs. 15,000).

• Under Table 3.1(b) (Taxable value on which GST is payable), you will report Rs. 3,000 as the value on which GST is payable (the margin).

• The tax amount will be computed on the Rs. 3,000 margin.

3) What would be his turnover — Rs. 15,000 or Rs. 3,000?

• For GST turnover purposes, the full sale value (Rs. 15,000) is considered turnover.

• The margin scheme only affects the taxable value for GST, not the turnover figure.

4) How to issue such invoice to customer?

• Invoice should mention the full sale value (Rs. 15,000).

• Mention clearly that GST is payable on margin under Notification No. 10/2017-CT (Rate) or similar applicable rule.

• GST should be calculated on the margin amount (Rs. 3,000).

• The invoice must contain all mandatory details including GSTIN, invoice number, date, descripttion, HSN code, sale value, margin value, GST rate, and tax amount.

Summary Example:

• Invoice value = Rs. 15,000 (plus GST Rs. 540)

• GST paid on Rs. 3,000 margin only.