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TMI BlogSales of Used Car by a company held as fixed AssetX X X X Extracts X X X X X X X X Extracts X X X X ..... Sales of Used Car by a company held as fixed Asset X X X X Extracts X X X X X X X X Extracts X X X X ..... e (WDV) of 15,000, resulting in a negative margin (5000). Our Doubt For the purpose of billing, either an Tax invoice or a bill of sale is to be issued? Procedure for filing GSTR-1 for the specified sale? Regards, Senthilkumar Reply By Ganeshan Kalyani: The Reply: WDV as per Income tax Act to be worked out. Then compare it with the sale value. For invoicing, you can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raise tax invoice with no tax in it. Further, no need to furnish the detail in GSTR-1. Reply By YAGAY andSUN: The Reply: In the case of selling a used car (fixed asset) under the marginal scheme where the selling price (Rs.10,000) is less than the WDV (Rs.15,000), resulting in a negative margin (Rs.5,000), the following points address your doubts: 1. Invoice to be Issued - Tax Invoice or Bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Supply? Since no output tax is payable due to negative margin under the marginal scheme as per Rule 32(5) of the CGST Rules, and the supply is exempt from tax, a Bill of Supply should be issued instead of a tax invoice. A Tax Invoice is issued only when GST is chargeable. In your case, no GST is payable (as there is a negative margin and no tax liability), so a Bill of Supply is the correct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... document. 2. GSTR-1 Filing Procedure for This Sale Since no GST is payable and the transaction results in a negative margin, there is no requirement to report this transaction in Table 12 of GSTR-1 (HSN summary) or in Table 6 (B2C) or Table 4 (B2B), depending on the nature of the buyer. However, to maintain accurate turnover records, it is advisable to report the outward supply as an exempt sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply, either in: Table 8 of GSTR-1 (if the buyer is unregistered and the value is below threshold), or Table 8A/8B (Nil Rated/Exempt/Non-GST outward supplies), indicating the sale as an exempt supply under the marginal scheme. Conclusion: You should issue a Bill of Supply (not a Tax Invoice), and the transaction should be disclosed under the exempt/nil-rated section of GSTR-1, ensuring complianc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with the marginal scheme under Rule 32(5). X X X X Extracts X X X X X X X X Extracts X X X X
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