TaxTMI 
TaxTMI 
It is ruled that N. No. 08/2018 CT(R) only applicable for Dealers of Second Hand Goods... Is the advance ruling is correct... N. No. 08/2018 CT(R) clearly exempts the Tax in excess of the amount calculated as specified in the said notification... Nowhere is the Notification said it is only applicable to the Dealers of Second Hand Goods.
- Aivar
Sale of Used Car whether Tax to be calculated on Margin only for the Second Hand Goods Dealers not for others?
23 Feb 2026 
12 Replies 
2837 Views Asked by
Margin scheme for used vehicles: applicability disputed between second hand dealers and any registered seller of specified vehicles.
Whether GST on sale of a used motor vehicle is computed on the margin or on full consideration turns on whether the general margin valuation rule is limited to dealers in second hand goods or whether the motor vehicle notification independently allows any registered person selling specified used vehicles to pay tax on the margin; advance rulings generally restrict the margin method to those in the business of dealing in second hand goods, while some contend the notification grants a standalone concession to all registered sellers of notified vehicles. (AI Summary)
Whether GST on sale of a used motor vehicle is computed on the margin or on full consideration turns on whether the general margin valuation rule is limited to dealers in second hand goods or whether the motor vehicle notification independently allows any registered person selling specified used vehicles to pay tax on the margin; advance rulings generally restrict the margin method to those in the business of dealing in second hand goods, while some contend the notification grants a standalone concession to all registered sellers of notified vehicles. (AI Summary)