Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Margin method under gst

547 views

Save Share

Join Us Follow Us Add as Source

anies

student

26 Points Posted on 01 May 2023

whether e invoicing will apply for old vehicle sale under margin method as per rule 32(5) to registered person.

Replies (2)

Quick Summary

This discussion clarifies whether e-invoicing is required for sales of old vehicles under the GST margin scheme, where GST is paid only on the profit margin. Generally, e-invoicing is mandatory for B2B supplies if your previous financial year's turnover exceeded 10 crore, unless you fall under specific exemptions like banking, financial institutions, or government departments.

CA Rakesh Ishi

Working at Private Company

7751 Points Posted on 01 May 2023

In the case of the sale of old vehicles under the margin scheme, where the sale price is calculated on the basis of the difference between the purchase price and sale price, and GST is paid only on the margin amount, e-invoicing may not be mandatory under the current rules.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 01 May 2023

As per Rule 48 of CGST Act R/w Notification 17/22 CT , E-invoice is applicable on all b2b supplies made by taxpayer whose aggregate turnover in preceeding fy exceed 10 crore.

And as per Notification no. 13/2020- Central Tax exempted following categories of the person from issuing e-invoice-

A banking company,
A financial institution,
A non-banking financial company (NBFC),
- A person engaged in providing passenger transportation service,
-An insurer,
-A goods transport agency (i.e., GTA) supplying service,
-A person engaged in providing services in terms of admission of the exhibition of the cinematograph films in the multiplex screen,
- special economic zone unit (SEZ) is also exempted from e-invoice.
- Govt department.

So if your aggregate turnover in preceeding fy > 10 crore & as you do not cover under above categories, you are liable to generate E-invoice.