A person dealing old and used motor vehicle (Margin Scheme) Rule 32(5) of CGST Rules

Margin scheme valuation for used motor vehicles sets taxable value method and limits concessional rates where input credits are claimed.

Valuation under the margin scheme for dealers in old and used motor vehicles: if the supplier has claimed depreciation, value equals consideration received minus depreciated value on date of supply (negative results ignored); otherwise value equals selling price minus purchase price (negative results ignored). Concessional GST and compensation cess rates apply to supplies of used motor vehicles but are not available where the supplier has availed input tax credit or equivalent credit on those goods.