GST reporting on sale of used car

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... GST reporting on sale of used car
Query (Issue) Started By: - Mohideen A Dated:- 27-5-2022 Last Reply Date:- 30-5-2022 Goods and Services Tax - GST
Got 2 Replies
GST
Dear Experts, we wish to draw your attention to Notification no 8/2018 dt 25th Jan 2018 regarding GST levy on margin amount on supply of used motor vehicles( including cars). Background: we are a registered person into .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... IT/ITes sector, and we had transferred used motor vehicle to a registered person ( car dealer). From the notification it is inferred the tax shall be levied on the margin between consideration received for supply of such goods and the depreciated value of such goods on the date of supply, and where the margin of such supply is negative, it shall be ignored. Since we the margin value for the transa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ction undertaken by us is negative, GST levy on this supply is ignored. Our concern is w.r.t reporting the transaction in e-invoice & GST portal since the value is ignored for GST liability discharge, wherein can we report this under B2B tab with tax rate as zero since the margin value is negative. Reply By Ganeshan Kalyani: The Reply: Sir, there is no table in GSTR-3B and in GSTR-1 to report s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uch transaction. So in my view, no need to furnish the same in the returns. Reply By Amit Agrawal: The Reply: Please see if you can show 'taxable value' as 'zero', then, tax-rate as applicable (NOT 'zero' but applicable tax-rate), then tax payable as 'zero' (because taxable value is 'zero') but invoice value is your 'selling price' while e-invoicin .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... g & filing Form GSTR-1. (GST Portal accepts difference when "taxable value plus tax" is NOT equal to invoice-value. I am not sure if it accepts above transaction with zero taxable value) Reporting such invoice vide e-invoicing & Form GSTR-1 (if portal indeed accepts as suggested above) means disclosure of 'supply' made by you, whose taxable value as well as tax-payment (both as .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 'zero') is also considered & shown while filing corresponding month's Form GSTR-3B. All above are strictly personal views of mine and the same should not be construed as professional advice / suggestion in any way.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X