Sales invoice under margin scheme for second hand cars

dear experts

can anyone share the invoice template for second hand cars...?

here GST is payable on margin amount only so how can we charge in invoice??

normally no one wants to disclose the margin in invoice so how can it create??
Replies (7)
Quick Summary
This discussion addresses how to create a sales invoice for second-hand cars when using the GST margin scheme. The core issue is how to correctly charge GST on the profit margin without explicitly revealing the margin amount to the customer. While the margin scheme means GST is only payable on the difference between purchase and sale price, standard invoicing practices can inadvertently disclose this profit. The advice suggests options like issuing a full-value invoice and handling the GST calculation internally for GSTR1 filings, or potentially using a commission-based approach, though this also risks revealing the margin.

It's the same as new car
Sir
in new car the GST is chargeable on whole amount but here only on margin.
thats why asked

Please elaborate your question. If it is your business to sell second hand cars then it means when you buy it, the seller made an invoice on your name on that time you are having itc & then when you sold it you should mention the whole amount there so the customers never have a chance to know what is your margin . 

 

Sir
i am in the business of trading in second hand cars and registered under GST.
i am following margin scheme for payment of GST where i need to pay GST @ 18% only on difference between sale price and purchase price.

now suppose i have purchased one car from individual @ 5 lacs and sold at 5.5 Lacs then as per margin scheme i have to pay 18% GST on my margin of 0.5 lac i.e Rs.9000.

my question is how can i charge GST Rs.9000 in invoice of 5.5 lacs.
if i am showing this 9000 in invoice then the customer will come to know that 50k is my margin.
but i don't want to disclose my margin.

how can we proceed.
Kindly reply with format if possible.

There are 2 process , when you buy it get invoice from seller ( Normally tax payers affords cars but it is not compulsory ) so if they not provide you invoice then pay rcm for that & get set off & you should make an invoice of full amount so customers will never know what could be your margin price. Second, I think if your business is coming under commission basis, write down their difference amount & make an invoice but at that time customers can easily understand the margin price .

Sir
my query is specifically for sales invoice only.

if i prepare sales invoice for total amount (rs.550000 in my above eg) then my margin will not show but at the time of filling GSTR1 i have to mention the Taxable value and tax so at that they will come to know. (since it is B2B supply)

and as per the scheme i can't issue tax invoice.

so how to prepare invoice.

A sales invoice issued under the margin scheme for second-hand cars clearly outlines the transaction while following the special VAT rules that apply to used vehicles. Instead of charging VAT on the full selling price, the margin scheme only applies VAT to the profit margin Toyota Camry—the difference between what the dealer paid for the car and what it was sold for.

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