GST exemption on used vehicle margin: tax applied only on supplier margin, subject to input tax credit restrictions. The government exempts state GST on intra state supplies of specified old and used motor vehicles to the extent of tax on the supplier's margin over a prescribed base rate, with category specific marginal rates and vehicle specifications determined under the Motor Vehicles Act. Margin for depreciated assets equals consideration less depreciated value; otherwise it equals selling price less purchase price; negative margins are ignored. Exemption is inapplicable where the supplier has availed input tax credit, CENVAT, VAT input credit or other taxes paid on the goods.
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Provisions expressly mentioned in the judgment/order text.
GST exemption on used vehicle margin: tax applied only on supplier margin, subject to input tax credit restrictions.
The government exempts state GST on intra state supplies of specified old and used motor vehicles to the extent of tax on the supplier's margin over a prescribed base rate, with category specific marginal rates and vehicle specifications determined under the Motor Vehicles Act. Margin for depreciated assets equals consideration less depreciated value; otherwise it equals selling price less purchase price; negative margins are ignored. Exemption is inapplicable where the supplier has availed input tax credit, CENVAT, VAT input credit or other taxes paid on the goods.
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