Procedure for billing and filing under GST for sales of used car by business held as fixed asset

For the sale of a used car by a registered person, the applicable GST rate is 18% or 12% as per the 08/2018 GST Rate Notification. If you opt for the Marginal scheme: 1. _Calculate the margin_: Calculate the difference between the sales consideration and the Written Down Value (WDV) of the car. If the margin is positive, you need to pay GST on the margin. 2. _Invoice_: Show the following in the invoice: - Sales consideration (gross amount) - WDV - Margin (difference between sales consideration and WDV) - GST amount (18% or 12% of the margin) 3. _GSTR-1 return_: Show the following in GSTR-1: - Sales consideration (gross amount) in the "Taxable Value" column - GST amount (18% or 12% of the margin) in the "Tax Paid" column - Show the margin (difference between sales consideration and WDV) in the "Margin" column (if available) or in the "Descripttion" field Note: - The marginal scheme is optional. If you don't opt for it, you'll pay GST on the entire sales consideration. - Consult a tax professional or chartered accountant to ensure you follow the correct procedure and meet all the conditions. Remember, the marginal scheme is only applicable if: - The used car is sold in the same state where it was purchased - The car is not a luxury car (as defined in the notification) - The seller is a registered person - The buyer is not a registered person