Just a moment...

Report
FeedbackReport
Bars
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID : 117343
- 0 -

Margin scheme for car dealer under GST

Date 09 Jul 2021
Replies5 Answers
Views 1894 Views
Asked By

Dear sir,

Our car dealer sells used car where such used cars are purchased from unregistered person as well as registered person under GST.

Question. Can we opt for margin scheme for supply taken from unregistered person and apply normal valuation for car purchased from registered person and avail the ITC on it.

Hence my final doubt is that, are both valuation allowed for car dealer ? i.e. One car for valuation under 32(5) and other car for valuation under sec 15.

Thanks in advance.

5 answers
Sort by

Old Query - New Comments are closed.

Hide
- 0
Replied on Jul 9, 2021
1.

This can be done since it is a conditional valuation and not mandatory

- 0
Replied on Jul 9, 2021
2.

In my view, there is no such restriction. There is also no condition of following margin scheme for all types of supply.

- 0
Replied on Jul 12, 2021
4.

What is 32(5) valuation. Unfortunately the link is taking to section 32 but 32(5) is not there.

- 0
Replied on Jul 12, 2021
5.

It is sub-rule 5 of Rule 32 of CGST Rules, 2017. It is extracted below:-

"5) Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored :

Provided that the purchase value of goods repossessed from a defaulting borrower, who is not registered, for the purpose of recovery of a loan or debt shall be deemed to be the purchase price of such goods by the defaulting borrower reduced by five percentage points for every quarter or part thereof, between the date of purchase and the date of disposal by the person making such repossession".

Old Query - New Comments are closed.

Hide
Recent Issues