Dear Sir,
Iam a registered dealer under GST.May I request your expert advice as under:
If I purchase a repossessed vehicle @ 100000-00( which falls under 12% gst)
PURCHASE PRICE :- 100000-00
EXPENSES ;- 25000-00 (on insurance cover,MV tax,Parking charges to yard,4 tyre, (incld.GST)
Sold the vehicle@ ;- 150000-00
Net Dealer Margin :- 25000-00
Would I have to pay the GST on Dlr Margin i.e on 25000-00 or on the difference of sale price & purchase price 150000 (-)100000 )= 50000
Kindly have your kind advice on the above confusion.
Regards,
Sunil
GST Payable on Full Margin for Repossessed Vehicle Sales, Including Refurbishment Costs; Separate Invoices Not Allowed. A dealer in second-hand vehicles sought advice on GST obligations when selling a repossessed vehicle. The main query was whether GST should be paid on the dealer's margin of 25,000 or the difference between the sale and purchase price, which is 50,000. Responses clarified that GST is payable on the 50,000 difference. The dealer also asked about invoicing refurbishment costs separately, but was advised that GST should be paid on the total margin, including refurbishment, and separate invoices are not permissible. The dealer confirmed dealing in second-hand vehicles under the GST scheme. (AI Summary)
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