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

805 views 1 replies
User Avatar

18 Points Joined April 2024

 The sale of used car by a registered person and applicable gst rate 18% or 12% as per 08/2018 GST Rate Notification.

If we opt for Marginal scheme, 

What is the procedure to invoice the difference between the sales consideration and Written Down Value of the car is positive and also which value to be shown in GSTR1 return. Either marginal value or sales consideration value.

Thanks,

Regards,

Senthilkumar

0 Reply Share Follow
On 13 September 2024 at 09:42 Report
Replies (1)
User Avatar

Master in Accounts & high court Advocate
9434 Points Joined December 2011

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

Reply
On 13 September 2024 at 13:15


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading