My Renowned client's business is old/New Vehicle trading. The Client purchases old Vehicles as Items & Sales them to different types of Customers. The GST register Customer & Unregistered Customer are involved in these types of dealing. Our Government has released a notification to implement the new GST calculation policy on old and used vehicles. The GST will be calculated on the (profit) margin of the Supply. The Margin of Supply shall be difference between sale price and purchase price and where the margin of such supply is negative, GST calculation shall be ignored.
Suppose, client has purchases a old vehicle without any GST & the Purchase cost is Rs. 100000/-. Now the client wants to sale the same Vehicle with the price of Rs. 150000/- with GST 18%. In this Case GST18% will be applicable on Rs. 50000/-.
How do I calculate the GST on Old Vehicle Sales ?
Now or Never