ITC for second hand car dealer

692 views 6 replies
dear expert.

I m a dealer of second hand cars and paying gst on difference between sale and purchase amount.

now can I take the ITC on spare parts and telephone exp which are using for business purposes...?
Replies (6)
Yes... You can avail ITC.
thanks for reply.

actually notification for margin scheme says that this notification can be applicable only if ITC is not claimed....

that's why asking this doubt...
can u please attache the relevant provision to support your answer..
yes you can avail ITC
i think u can't claim. u can claim only when u pay gst on Sale value and not on difference
No you cannot avail ITC. As per rule 32 (5): a person dealing in 2nd hand goods & not a
Continue my above reply : Person dealing in 2nd hand goods & have not availed the Input Tax Credit on His purchase , then the value of supply will be difference of Purchase - Sale . Means on margin you have to deposit the GST if it's in Positive Hence if you have choose above margin scheme the above you cannot avail the ITC on spare parts or telephone exp. For the whole year .

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