Mr. X is a car dealer bought car from Mr. A(user) for Rs. 9 lakh and sold the same car to Mr. B dealer with valid gst no. for Rs. 9.60 lakh, and incurred 10000 as other expenses.
How much Gst will Mr.X have to pay and how much will be available for ITC?
Thank you in advance.
1. Mr. X on purchase of 2nd hand vehicle will have to pay GST on reverse charge and same can be availed as ITC while setting off output liability
2. Mr. X will have to pay GST on subsequent sale as regular sale i.e. on 9.6lacs
3. ultimately he'll pay GST on value addition of 60k as he'll get benefit of RCM ITC
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