A and B are two registered dealers and dealing with buying and selling of used cars. A is buying from unregistered dealers and selling to B. B is buying cars from registered dealers(A etc.) and selling to both registered and unregistered dealers.
My question is what is the GST implication on transactions between A and B, what is gst liability for A and for B.
14 February 2020
in terms of Rule 32(5) of CGST Rules, GST needs to be charged on margin (i.e. sale price – purchase price). so A is required to discharge GST on margin earned on the vehicle.
but If the dealers are not availing any exemption through the notifications (not paying gst on the margins),then he would require to discharge GST on entire sale value at full tax rate, wherein he can avail the ITC on purchase of old and used car.
CAclubindia
