TaxTMI 
TaxTMI 
Margin scheme for car dealer under GST
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....argin scheme for car dealer under GST<br> Query (Issue) Started By: - MANOHAR KALBURGI Dated:- 9-7-2021 Last Reply Date:- 12-7-2021 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Dear sir, Our car dealer sells used car where such used cars are purchased from unregistered person as well as registered person under GST. Question. Can we opt for margin scheme for supply taken from unregiste....
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....red person and apply normal valuation for car purchased from registered person and avail the ITC on it. Hence my final doubt is that, are both valuation allowed for car dealer ? i.e. One car for valuation under 32(5) and other car for valuation under sec 15. Thanks in advance. Reply By Shilpi Jain: The Reply: This can be done since it is a conditional valuation and not mandatory Reply By KAST....
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....URI SETHI: The Reply: In my view, there is no such restriction. There is also no condition of following margin scheme for all types of supply. Reply By YAGAY andSUN: The Reply: For your kind perusal. https://www.cbic.gov.in/resources//htdocs-cbec/gst/51_GST_Flyer_Chapter30.pdf;jsessionid=A5CA64E2F898906C898499EC1EA020ED Reply By NIKHIL SINGHAL: The Reply: What is 32(5) valuation. Unfortunate....
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....ly the link is taking to section 32 but 32(5) is not there. Reply By KASTURI SETHI: The Reply: It is sub-rule 5 of Rule 32 of CGST Rules, 2017. It is extracted below:- "5) Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no i....
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....nput tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored : Provided that the purchase value of goods repossessed from a defaulting borrower, who is not registered, for the purpose of recovery of a loan or debt shall be deemed to b....
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....e the purchase price of such goods by the defaulting borrower reduced by five percentage points for every quarter or part thereof, between the date of purchase and the date of disposal by the person making such repossession".<br> Discussion Forum - Knowledge Sharing ....