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Sales invoice under margin scheme for second hand cars

Jeetu Kodwani (Consultant) (423 Points)

20 April 2023

dear experts

can anyone share the invoice template for second hand cars...?

here GST is payable on margin amount only so how can we charge in invoice??

normally no one wants to disclose the margin in invoice so how can it create??

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6 Replies

sabyasachi mukherjee (27642 Points)
Replied 20 April 2023

It's the same as new car

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Jeetu Kodwani (Consultant) (423 Points)
Replied 20 April 2023

Sir
in new car the GST is chargeable on whole amount but here only on margin.
thats why asked

NARENDRA (ACCOUNTS MANAGER) (2141 Points)
Replied 20 April 2023

Please elaborate your question. If it is your business to sell second hand cars then it means when you buy it, the seller made an invoice on your name on that time you are having itc & then when you sold it you should mention the whole amount there so the customers never have a chance to know what is your margin .

Jeetu Kodwani (Consultant) (423 Points)
Replied 21 April 2023

Sir
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 from individual @ 5 lacs and sold at 5.5 Lacs then as per margin scheme i have to pay 18% GST on my margin of 0.5 lac i.e Rs.9000.

my question is how can i charge GST Rs.9000 in invoice of 5.5 lacs.
if i am showing this 9000 in invoice then the customer will come to know that 50k is my margin.
but i don't want to disclose my margin.

how can we proceed.
Kindly reply with format if possible.

NARENDRA (ACCOUNTS MANAGER) (2141 Points)
Replied 21 April 2023

There are 2 process , when you buy it get invoice from seller ( Normally tax payers affords cars but it is not compulsory ) so if they not provide you invoice then pay rcm for that & get set off & you should make an invoice of full amount so customers will never know what could be your margin price. Second, I think if your business is coming under commission basis, write down their difference amount & make an invoice but at that time customers can easily understand the margin price .

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Jeetu Kodwani (Consultant) (423 Points)
Replied 22 April 2023

Sir
my query is specifically for sales invoice only.

if i prepare sales invoice for total amount (rs.550000 in my above eg) then my margin will not show but at the time of filling GSTR1 i have to mention the Taxable value and tax so at that they will come to know. (since it is B2B supply)

and as per the scheme i can't issue tax invoice.

so how to prepare invoice.