GST reporting on sale of used car

[Mohideen A]

Dear Experts,

we wish to draw your attention to Notification no 8/2018 dt 25th Jan 2018 regarding GST levy on margin amount on supply of used motor vehicles( including cars).

Background: we are a registered person into IT/ITes sector, and we had transferred used motor vehicle to a registered person ( car dealer). From the notification it is inferred the tax shall be levied on the margin between consideration received for supply of such goods and the depreciated value of such goods on the date of supply, and where the margin of such supply is negative, it shall be ignored. Since we the margin value for the transaction undertaken by us is negative, GST levy on this supply is ignored.

Our concern is w.r.t reporting the transaction in e-invoice & GST portal since the value is ignored for GST liability discharge, wherein can we report this under B2B tab with tax rate as zero since the margin value is negative.

AI Summary

IT Company Queries GST Reporting for Negative Margin Used Car Sale Under Notification 8/2018 /2018 A registered IT/ITes company inquired about GST reporting for a used car sale to a dealer, referencing Notification 8/2018. The notification specifies GST is levied on the margin between the sale price and the depreciated value. If the margin is negative, GST is ignored. The company questioned how to report this on the GST portal since the margin is negative. One expert suggested there's no need to report it in GSTR-3B or GSTR-1. Another suggested showing the taxable value as zero, with applicable tax rates, while noting that this is personal advice, not professional guidance.