How to raise invoice under margin method & e way bill? Purchase cost-1lacs and sold at 90000.

Reply: Raising invoice under margin scheme is very defective. As per Rule 32(5) Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored.

If the seller will raise invoice according to this rule, the buyer will easily know the margin of the seller, which may create problem for him. However, in your case the margin is negative, therefore, no tax is payable. You can raise invoice of Rs.90000/- and nil tax due to negative margin and raise the e-way bill also for Rs.90000/-.