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GST provision of used car dealer

79 views 1 replies

NISHANT SHAH

Tax Practioner

240 Points Joined March 2011

Hello friends,

please solve my query

1. A person is doing business of purchase and sell of old vehicles. He purchase them from users and resale them. Can he opt composition scheme in GST? Yes or no? If yes then on which amount he need to pay GST? on sale amount or difference of sale and purchase?

2. s there any provision that a person who purchase goods from unregistered dealer only, can not opt for composition?

Replies (1)

akshay parakh

Chartered Accountant

394 Points Joined August 2015

Check his eligibility as epr section 10(1) and 10(2)
and there is no such condition that composition person canot make purchases from urp in contrast for it is schemes for small taxpayers which generally sale to urps and sometimes purchase from urps also.