GSTR1 in case of Margin Scheme

In GSTR-1, show margin money as taxable value and calculate tax amount on that. In your case, Margin amount is Rs.40000/- and tax amount considering rate @ 18% is 7200/-. Total invoice value should be 47200/- which should be shown in GSTR-1 under B-B (Being buyer is registered) and tax of Rs.7200/- should be paid via GSTR-3B.

However, buyer will not be able to avail this ITC as it is block ITC in terms of section 17(5).

Let's see what other experts say in this.

Regards

Yes you are liable to Issue Tax Invoice if it is supplied to Registered dealer.
In term of Rule 32(5) the govt has given you a option to pay tax on Margin (without ITC) .

Reporting in GSTR 1.

In table 4(b2b)
In gross amount : 4.4 lacs
in table taxable : 40k (against 18%)

Thanks for the reply sir,
actually i have read GST Flyover issued by Dept where it is mentioned that the dealer following margin scheme cannot issue tax invoice.
have shared a link of that flyover.

i think that your answer is perfect but there is also written that in case of margin scheme the buyer cannot claim the ITC, so if i issue tax invoice and put 7200 tax in b2b then he will claim the credit.
can u please confirm once more.


https://www.google.com/url?sa=t&source=web&rct=j&url=https://old.cbic.gov.in/htdocs-cbec/gst/margin-scheme-under-gst.pdf&ved=2ahUKEwjzsfOUnMj-AhXNR2wGHXUdBVUQFnoECBYQBg&usg=AOvVaw1BLaUvCALGmZvBzsgr7PFK

Dear Jeetu
You have miss interpreted the GST flyer.
this what reproduced
"the person selling the car to the company shall not issue
any taxable invoice and the company purchasing the car shall not
claim any ITC."
In above "The person" is Unregistered person who is selling Car to "Company" & Company is M/s First Source ltd" which deals in 2nd hand goods.
So as per above :
.Purchase from Unregistered person is Exempted purchase for Company (deals in selling & buying 2nd hand goods) & as per Rule 32(5) the company cannot claim ITC .

So when Company further sell to any Registered taxpayer , can issue B2B invoices & recipient can claim ITC.


In addition to my Earlier Reply in regard to reporting of b2b transactions :
Report 4lac in table against 0%

for more detai youl can refer :
https://youtu.be/fg7V_dFWm98

Thanks alott Pankaj sir

You are always welcome