Dear Experts.
i am in the business of trading in second hand cars and registered under GST.
i am following margin scheme for payment of GST where i need to pay GST @ 18% only on difference between sale price and purchase price.
now suppose i have purchased one car @ 4 lacs and sold (B2B Supply) at 4.4 Lacs then as per margin scheme i have to pay 18% GST on my margin of 40000 i.e Rs.7200.
how can i show this in GSTR1.?
As per margin scheme i cannot issue tax invoice so how to show this B2B supply in GSTR1.?
what is Taxable value & invoice value to put?
In GSTR-1, show margin money as taxable value and calculate tax amount on that. In your case, Margin amount is Rs.40000/- and tax amount considering rate @ 18% is 7200/-. Total invoice value should be 47200/- which should be shown in GSTR-1 under B-B (Being buyer is registered) and tax of Rs.7200/- should be paid via GSTR-3B.
However, buyer will not be able to avail this ITC as it is block ITC in terms of section 17(5).
Let's see what other experts say in this.
Regards
CAclubindia
