Sale of Motor Car, Goods and Services Tax - GST

[Kaustubh Karandikar]

Sale Value of the motor car is Rs.28 Lakhs while depreciated value is Rs.10 Lakhs. GST is paid on the difference value i.e., on Rs. 18 Lakhs. How to prepare the E – Invoice / Tax Invoice? Since GST is paid on Rs.18 Lakhs, can we prepare Tax Invoice of Rs.18 Lakhs + GST and Commercial Invoice of Rs.28 Lakhs which is inclusive of all since the customer is B2C?

Posts / Replies

[Padmanathan Kollengode]

I have consistently held the below view though many do not agree to it:

Notification No. 8/2018 - Central Tax Rate is also EXEMPTION NOTIFICATION-

You have to raise an invoice cum bill-of-supply

Taxable Value - Rs.15.25 Lakhs + CGST 1.375 + SGST 1.375 (or 2.75 IGST)

Exempted supply - Rs.10 Lakhs
 

[Kaustubh Karandikar]

Thanks Padmanathan ji for your valued views.

[Amit Agrawal]

I respectfully differ with Shri Padmanathan Ji due to the following reasons:

A. Rule 46A reads as follows:

"Notwithstanding anything contained in rule 46 or rule 49 or rule 54, where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be issued for all such supplies.]

²[Provided that the said single “invoice-cum-bill of supply” shall contain the particulars as specified under rule 46 or rule 54, as the case may be, and rule 49.]"

B. Section 2 (47) defines as follows:

“exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply;

C. Subject supply under consideration is NOT wholly exempt from tax under section 11 and hence, same cannot be called as 'supply of exempted goods'.

D. Accordingly, tax-invoice u/r 46 needs to be issued showing selling price as Rs. 28 Lacs, Taxable value as Rs. 18 lac (presuming that taxes - at actual are payable separately by the buyer. Otherwise, taxable value needs to be worked out on cum-duty basis calculations), taxes as applicable as calculated on taxable value (w.r.t. Notification No. 8/2018 -Central Tax (Rate), with the presumption that condition as stated in Sr. No. 2 therein is duly fulfilled to claim partial exemption). & total value will be 'selling price plus 'taxes as applicable as calculated on taxable value''.

D1. For disclosure purpose on such tax-invoice u/s 46, taxable value can be shown in inner column of tax-invoice giving reference to concerned notification showing calculation of 'taxable value i.e. Margin of supplier' while outer columns will show corresponding figures for 'selling price', 'taxes actually payable' and total value respectively.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Shilpi Jain]

The Notification 8/2018 is worded in a way that it exempts GST in excess of the rate specified in the notification.

However, the notification also states that the GST has to be paid only on the margin. This is specifying of valuation.

Thus, it would not mean that it is an exempt supply to the extent of tax not paid on value in excess of the margin. Exemption is w.r.t. rate of tax which is partial in this case.

Tax invoice to be issued with taxable value as 18L.