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Margin method under gst

anies (student) (31 Points)

01 May 2023

whether e invoicing will apply for old vehicle sale under margin method as per rule 32(5) to registered person.

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CA Rakesh Ishi (Working at Private Company) (8200 Points)
Replied 01 May 2023

In the case of the sale of old vehicles under the margin scheme, where the sale price is calculated on the basis of the difference between the purchase price and sale price, and GST is paid only on the margin amount, e-invoicing may not be mandatory under the current rules.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 01 May 2023

As per Rule 48 of CGST Act R/w Notification 17/22 CT , E-invoice is applicable on all b2b supplies made by taxpayer whose aggregate turnover in preceeding fy exceed 10 crore.

And as per Notification no. 13/2020- Central Tax exempted following categories of the person from issuing e-invoice-

A banking company,
A financial institution,
A non-banking financial company (NBFC),
- A person engaged in providing passenger transportation service,
-An insurer,
-A goods transport agency (i.e., GTA) supplying service,
-A person engaged in providing services in terms of admission of the exhibition of the cinematograph films in the multiplex screen,
- special economic zone unit (SEZ) is also exempted from e-invoice.
- Govt department.

So if your aggregate turnover in preceeding fy > 10 crore & as you do not cover under above categories, you are liable to generate E-invoice.

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