HOW TO RAISE INVOICE IN CASE OF MARGIN SCHEME UNDER 8/2018 CGST RATE NOTIFICATION

[SOPL SOPL]

Dear Sir

Supplier want to avail the notification 8/2018 cgst rate.

Supplier has not availed ITC at the time of purchase of motor vehicles.

Tax rate on purchase -- 28%

Tax rate as per notification is 18%

Purchase value -- 150

Sale value -- 120

Wdv value -- 105 (as on 31st March of last FY)

Wdv value -- 89.25 (as on date of sale)

What is the Gst taxable amount and tax amount ?

Kindly explain what figures you have considered for above calculation. Sale and Purchase is intra state transactions.

AI Summary

Supplier Queries GST Margin Scheme for Motor Vehicle Sales Without ITC, Seeks Guidance on Tax Calculation and Invoicing. A supplier seeks guidance on invoicing under the margin scheme of the 8/2018 CGST rate notification without availing Input Tax Credit (ITC) on motor vehicle purchases. The purchase tax rate is 28%, while the sale rate is 18%. The supplier queries the GST taxable amount and tax calculation for a sale value of 120, with a written-down value (WDV) of 105 at the end of the last fiscal year and 89.25 at the sale date. Respondents suggest using the WDV from the last fiscal year, calculating GST on the margin (15) at 18%. Options for filing in GSTR-1 include showing 105 at 0% tax and 15 at 18% or issuing a commercial debit note for 105.