TaxTMI 
TaxTMI 
Can I sell used goods under margin scheme purchased from a registered vendor when payment made to the vendor bank account, No ITC passed or claimed on the purchase but vendor didn't issue any invoice for the purchase
Margin scheme
17 Apr 2025 
4 Replies 
7046 Views Asked by
Margin scheme under GST allows taxation on margin when no ITC is claimed and invoice is missing, with documentary proof.
The margin scheme under GST permits taxation on the taxable margin for dealers in second hand goods when no ITC is availed. If goods are bought from a registered vendor without a tax invoice but payment is traceable, the scheme can apply provided the dealer substantiates the purchase and absence of ITC through bank payment evidence, delivery/receipt records, stock entries, photographs, communications, and by issuing a margin scheme sales invoice showing sale price, purchase price and tax only on the margin. (AI Summary)
The margin scheme under GST permits taxation on the taxable margin for dealers in second hand goods when no ITC is availed. If goods are bought from a registered vendor without a tax invoice but payment is traceable, the scheme can apply provided the dealer substantiates the purchase and absence of ITC through bank payment evidence, delivery/receipt records, stock entries, photographs, communications, and by issuing a margin scheme sales invoice showing sale price, purchase price and tax only on the margin. (AI Summary)