Reduction of state tax on intra state supply of used motor vehicles by applying margin based rates by vehicle category. State tax exemption applies to specified categories of old and used motor vehicles by exempting tax in excess of the amount computed by applying the notified rate to the supplier's margin. Four categories are specified with rates of 9% for certain large petrol/LPG/CNG, diesel and SUV categories, and 6% for other used vehicles. Margin for depreciable goods equals consideration less depreciated value where income tax depreciation was claimed; otherwise margin equals selling price less purchase price, with negative margins ignored. Exemption is inapplicable if input tax credit or analogous credits were availed.