Margin scheme for car dealer under GST

[MANOHAR KALBURGI]

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.

AI Summary

Margin scheme for used vehicles: optional margin valuation allowed where no ITC was claimed, normal valuation applies if ITC is availed.
Where a dealer in secondhand motor vehicles has not availed input tax credit on purchase, taxable value may be the margin (selling price minus purchase price) under the margin valuation rule for secondhand goods; this conditional method is optional and may be used for some supplies while supplies on which input tax credit was availed must follow normal valuation rules and permit ITC utilisation subject to GST conditions.