GST on Used Cars: Can Refurbishment Costs Be Deducted from Margin? Key Insights from Notification No. 8/2018.

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Full Text of the Document

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....Levy of GST - Valuation - determination of margin - old and used motor vehicles - claim of deduction of cost incurred on refurbishment from the margin - It is noticed that the explanation (ii) to the notification No. 8/2018 clearly used the word ‘purchase price’ not the ‘purchase cost’ of the goods. It means only the amount paid at the time of purchase of used and old cars can be considered as `purchase price’ for the purpose of this notification. - AAAR....