TaxTMI 
TaxTMI 
Can a composition taxable person avail the benefit of Notification 8 of 2018 (CTR) in respect of sale of used vehicles. Under the Notification, exemption is given in the tax rate (tax in excess of 18% shall be exempt). So if a composition dealer (say a trader) sells a second hand vehicle, will he be liable to pay GST @ 1%or 18% on the margin amount?. If the notification is not applicable to a composition taxable person, I suppose he will be liable to pay GST @ 1% on the entire sales consideration.
Applicability of Notification 8 of 2018 - Composition Taxable Person
22 Jun 2025 
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Composition scheme ineligibility: composition dealers must pay GST at composition rate on full sale value of used vehicles.
Composition taxpayers cannot use the margin scheme under Notification 8 of 2018 for used vehicles; margin valuation (selling price minus purchase price where no input tax credit was availed) and the exemption tied to that margin are separate from the composition mechanism. A person on the composition scheme must pay tax at the applicable composition rate on the full sale consideration of the used vehicle rather than applying the margin based tax calculation. (AI Summary)
Composition taxpayers cannot use the margin scheme under Notification 8 of 2018 for used vehicles; margin valuation (selling price minus purchase price where no input tax credit was availed) and the exemption tied to that margin are separate from the composition mechanism. A person on the composition scheme must pay tax at the applicable composition rate on the full sale consideration of the used vehicle rather than applying the margin based tax calculation. (AI Summary)