Queries regarding the margin scheme of GST

I'll address each of your questions related to the margin scheme of GST: 1. Calculating Purchase Price - *Product Cost*: Yes, include the product cost in the purchase price. - *Advertisement Costs*: No, advertisement costs are not included in the purchase price. They are considered as selling expenses. - *Shipping Costs*: No, shipping costs are not included in the purchase price. They are considered as selling expenses. 2. Filing GSTR-1 and GSTR-3B with Negative Margin - *Correctness*: No, filing GSTR-1 and GSTR-3B as nil is not correct. You should report the sales and purchases in the returns, even if the margin is negative. - *Reporting Negative Margin*: You can report the negative margin in the GSTR-1 and GSTR-3B returns. In the GSTR-1, report the sales and purchases in the respective tables. In the GSTR-3B, report the negative margin in the table for computation of taxable value. 3. Claiming ITC on Advertisement and Shipping Expenses - *ITC Eligibility*: No, you cannot claim ITC on advertisement and shipping expenses as they are not part of the purchase price. - *Alternative*: You can claim ITC on these expenses as business expenses in the GSTR-3B return, subject to the conditions and restrictions under the GST Act.