HOW TO RAISE INVOICE IN CASE OF MARGIN SCHEME UNDER 8/2018 CGST RATE NOTIFICATION, Goods and Services Tax - GST

[SSOE SSOE]

Dear Sir

Supplier want to avail the notification 8/2018 cgst rate.

Supplier has not availed ITC at the time of purchase of motor vehicles.

Tax rate on purchase -- 28%

Tax rate as per notification is 18%

Purchase value -- 150

Sale value -- 120

Wdv value -- 105 (as on 31st March of last FY)

Wdv value -- 89.25 (as on date of sale)

What is the Gst taxable amount and tax amount ?

Kindly explain what figures you have considered for above calculation. Sale and Purchase is intra state transactions.

Posts / Replies

[Shilpi Jain]

There is a view that the WDV should be taken as per the last day of the last FY since that is what which has been claimed under IT Act.

If such a view is taken then the taxable value will be 120-105 on which the GST has to be charged.

[NARENDER YARRAGORLA]

I am agreeing with the Madam View

[SSOE SSOE]

Dear Shilpi Jain Madam

1. In this case i have to raise invoice for 120 + Gst 2.7 (i.e 18% on 15) . Percentage comes to 2.25%.This tax rate is not available in GSTR-1. How to file this invoice in GSTR-1 ?

According to me --

Option 1: 105 should be shown in 0% tax rate in B2B and 15 in 18% tax rate.

Option 2: Raising invoice for 15 @ 18% and raising commercial debit note without tax for 105.

I think first option is better since the entire transaction can be captured in one document.

Kindly provide your comments whether we can go with the option 1.

[shwetal oswal]

gst will be 5.535 (18% of margin i.e. 105-89.25).

[SSOE SSOE]

Any other comments with complete explanation.

[Shilpi Jain]

In the returns you will have to put taxable value as 15 only and not 120. RAte of tax will be 18%. Invoice value will be total amount that you will invoice him for.