TaxTMI 
TaxTMI 
Sales of Used Car by a company held as fixed Asset
X X X X Extracts X X X X
X X X X Extracts X X X X
....ales of Used Car by a company held as fixed Asset<br> Query (Issue) Started By: - Senthilkumar M Dated:- 16-5-2025 Last Reply Date:- 17-5-2025 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>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....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (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 Reply By Ganeshan Kalyani: The Reply: WDV as per Income tax Act to be worked out. Then compare it with the sale value. For invoicing, you can ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....raise tax invoice with no tax in it. Further, no need to furnish the detail in GSTR-1. Reply By YAGAY andSUN: The Reply: In the case of selling a used car (fixed asset) under the marginal scheme where the selling price (Rs.10,000) is less than the WDV (Rs.15,000), resulting in a negative margin (Rs.5,000), the following points address your doubts: 1. Invoice to be Issued - Tax Invoice or Bill ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Supply? Since no output tax is payable due to negative margin under the marginal scheme as per Rule 32(5) of the CGST Rules, and the supply is exempt from tax, a Bill of Supply should be issued instead of a tax invoice. A Tax Invoice is issued only when GST is chargeable. In your case, no GST is payable (as there is a negative margin and no tax liability), so a Bill of Supply is the correct d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ocument. 2. GSTR-1 Filing Procedure for This Sale Since no GST is payable and the transaction results in a negative margin, there is no requirement to report this transaction in Table 12 of GSTR-1 (HSN summary) or in Table 6 (B2C) or Table 4 (B2B), depending on the nature of the buyer. However, to maintain accurate turnover records, it is advisable to report the outward supply as an exempt supp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ly, either in: Table 8 of GSTR-1 (if the buyer is unregistered and the value is below threshold), or Table 8A/8B (Nil Rated/Exempt/Non-GST outward supplies), indicating the sale as an exempt supply under the marginal scheme. Conclusion: You should issue a Bill of Supply (not a Tax Invoice), and the transaction should be disclosed under the exempt/nil-rated section of GSTR-1, ensuring compliance....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... with the marginal scheme under Rule 32(5). Reply By Shilpi Jain: The Reply: This is only a valuation adjustment and would not make this an exempt supply. Issue a tax invoice and mention that taxable value is zero. Include in GSTR-1 as taxable value 0, if not possible then 0.1 with no tax. Reply By Sadanand Bulbule: The Reply: GST is applicable only on the differential margin bet....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ween the sale price and purchase price of second-hand cars as per the scheme. But, if the differential amount is negative, then the same has to be ignored. Since it is negative amount in the present case, sale bill needs to be issued. Reply By KASTURI SETHI: The Reply: Tax invoice is required to be issued. <br> Discussion Forum - Knowledge Sharing ....