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ITC for second hand car dealer

Jeetu Kodwani (Consultant) (421 Points)

05 January 2019

dear expert.

I m a dealer of second hand cars and paying gst on difference between sale and purchase amount.

now can I take the ITC on spare parts and telephone exp which are using for business purposes...?

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6 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 05 January 2019

Yes... You can avail ITC.

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Jeetu Kodwani (Consultant) (421 Points)
Replied 05 January 2019

thanks for reply.

actually notification for margin scheme says that this notification can be applicable only if ITC is not claimed....

that's why asking this doubt...
can u please attache the relevant provision to support your answer..

pritesh (CA Final student) (7101 Points)
Replied 05 January 2019

yes you can avail ITC

CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 05 January 2019

i think u can't claim. u can claim only when u pay gst on Sale value and not on difference

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 06 January 2019

No you cannot avail ITC. As per rule 32 (5): a person dealing in 2nd hand goods & not a

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 06 January 2019

Continue my above reply : Person dealing in 2nd hand goods & have not availed the Input Tax Credit on His purchase , then the value of supply will be difference of Purchase - Sale . Means on margin you have to deposit the GST if it's in Positive Hence if you have choose above margin scheme the above you cannot avail the ITC on spare parts or telephone exp. For the whole year .