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Margin scheme vis-a-vis composition dealers

JANAK TANNA (STUDENT) (90 Points)

10 June 2018

can composition dealer opt margin scheme available in case of buying and selling of second hand goods????

if yes, then composition tax @ 1% is to be paid on transaction value or transaction value less purchase price of second hand goods????

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13 Replies

Vinod Babu (24191 Points)
Replied 10 June 2018

Sir, please mention nature of business.

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JANAK TANNA (STUDENT) (90 Points)
Replied 10 June 2018

buying and selling of old laptops sir. please explain if we can charge 1% on our profit margin being a composition dealer? being a composition dealer, we don't avail ITC in anyway

please explain on legal front

Ravi SADhiyan (Practice) (4510 Points)
Replied 10 June 2018

Originally posted by : JANAK TANNA
	buying and selling of old laptops sir. please explain if we can charge 1% on our profit margin being a composition dealer? being a composition dealer, we don't avail ITC in anywayplease explain on legal front

Under Composition Scheme of GST 1 %apply on Turnover Amount , Not on Profit Amount

1 Like

Vinod Babu (24191 Points)
Replied 10 June 2018

Yes, Ravi sir is right. 1% is on your outwards supplies.
You can put any margin as you wish on sale of old laptop.

JANAK TANNA (STUDENT) (90 Points)
Replied 10 June 2018

means i can't apply 1% on margin??

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Vinod Babu (24191 Points)
Replied 10 June 2018

No law is restricted to take a fixed margin. It is seller decision to sell it as per his profit.
My personal opinion is that raise bills on your selling price.

JANAK TANNA (STUDENT) (90 Points)
Replied 10 June 2018

ok sir. thanks a lot

1 Like

Vinod Babu (24191 Points)
Replied 10 June 2018

You r always welcome.

prakin singhal (314 Points)
Replied 10 June 2018

you have to pay 1% on the transaction value and not on the margin amount.

1 Like

Vinod Babu (24191 Points)
Replied 10 June 2018

compostion dealer has to 1% on outwards supplies amount from his own pocket and remit it to the government while filing GSTR 4 returns.

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GST Consultant (Tax Consultant) (894 Points)
Replied 10 June 2018

agreed with Mr. Prakin's opinion

Vimal (Student CS) (23 Points)
Replied 23 June 2018

Hi,

I have some queries on Marginal Scheme.

What will be the document of invoice like Tax invoice or Bill of Supply?

Can a GST registered Dealer sell second hand goods Inter State on IGST under Marginal Scheme?

Does registered dealer required to raise eway bill in case value of supply above 50000 and margin is under 50000?

Is there any Reverse charge on Labour charge, etc inccurred on refurbished items?

How to file GSTR3B and GSTR1 under Margin Scheme.

Rishi Jain (Proprietor) (27 Points)
Replied 10 September 2023

I think you all have ignored Purchase of Goods from Unregistered, for Composition Tax Payer. If Composition Tax Payer cannot work under Margin Scheme, how can he buy from Unregistered without paying RCM.