Sales of Used Car by a company held as fixed Asset

[Senthilkumar M]

Sir/Madam,

Our company is preparing to sell one of the used cars recorded in the books as a fixed asset.

By applying the marginal scheme, the selling price (10000) is less than the written down value (WDV) of 15,000, resulting in a negative margin (5000).

Our Doubt

For the purpose of billing, either an Tax invoice or a bill of sale is to be issued?

Procedure for filing GSTR-1 for the specified sale?

Regards,

Senthilkumar

 

 

 

AI Summary

Marginal scheme negative margin means no GST; issue Bill of Supply or alternatively a tax invoice with zero taxable value.
Under the marginal scheme a sale of a company's used car with a negative margin results in no output tax; one compliance approach is to issue a Bill of Supply and disclose the sale as exempt/nil-rated in GSTR-1. An alternative view recorded advises issuing a tax invoice showing zero taxable value (or a minimal nominal value if required by systems) and including the transaction in GSTR-1 as a taxable outward supply with zero tax or as an exempt/nil-rated entry, while ensuring turnover records are maintained.