Sale of car by proprietor in gst

[Allauddin Patel]

My question is.

Proprietor purchased car and shown in fixed asset and claim depreciation on it, after few years he sold that car to one person. So do we need to issue tax invoice, e-invoice and e-way bill ?

Kindy help me ...wdv is 500000

Sale value is 590000

[Sadanand Bulbule]

If ITC on the car was not availed (which is common, because ITC on motor vehicles for personal use or passenger transport is blocked under Section 17(5)), then you can apply the margin scheme; 

Margin Scheme (Rule 32(5) of CGST Rules)-- If ITC was not claimed, GST is payable only on the margin amount of Rs. 90,000/- in your case  at 18%.

If ITC is claimed, then on entire amount of Rs. 5,90,000/- GST has to be paid, despite blocked credit.

If it is transported, e-way bill is required.

E-invoice depends upon turnover of Rs. 5 Crores and above.

[Allauddin Patel]

Yes ...turn over is above 5cr so we should generte e invoice ...

Should we issue tax invoice in items mode mentioning 1 nos in quantity or accounting mode invoice in tally prime ...?

[Sadanand Bulbule]

E-invoice is required if the supply of goods/services is between two registered persons- B2B supply.

If it is normal tax invoice, mention Margin Scheme-Rule 32[5] with all usual particulars.

[KASTURI SETHI]

Also peruse Notification No. 8/2018-C.T. (Rate), dated 25-1-2018. 

[Allauddin Patel]

Thank you sirs

AI Summary

Sale of a used car: GST on margin if no ITC; e-way bill and e-invoice rules may apply based on transport and turnover. When a proprietor sells a used car, GST treatment depends on whether input tax credit was claimed: if ITC was not availed, the margin scheme under Rule 32(5) applies and GST is payable on the margin (sale price less written down value); if ITC was claimed, GST is payable on the entire sale consideration. Transport of the vehicle requires an e-way bill, and e-invoice rules apply based on the supplier's turnover and B2B status. Tax invoices should note application of the margin scheme.