Margin scheme: GST payable on the margin between sale and purchase price, with specific ITC and reporting obligations.
The margin scheme requires GST to be paid on the difference between selling and purchase price, treated as nil when negative; losses cannot be set off against other margins. Eligibility requires regular dealing in used goods, no major processing, and no ITC claimed on purchased goods sold under the scheme. Purchases from registered suppliers attract tax but no ITC may be claimed if margin scheme is used. Margin-scheme supplies must not have taxable invoices issued, are reported as outward taxable supplies in GSTR-1 and GSTR-3B with taxable value equal to the margin, and e-way and e-invoice rules apply as per thresholds. (AI Summary)