TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 342
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....hicles including small cars, SUVs, Sedans and others. Further, the applicant submits that in the course of business they incur several ancillary expenses in addition to the cost of purchasing used vehicles. These include, but are not limited to:- a) Refurbishment charges such as painting, purchase of necessary accessories, mechanical repairs, and interior cleaning; b) Marketing and advertisement expenses; c) Professional fees; d) Housekeeping, rent, and office expenses; e) Software subscriptions, manpower recruitment and staffing; f) Administrative overheads as well as capital goods expenses such as laptops, equipment, and furniture etc. 3. The applicant states that GST is duly charged on all such inward supplies received from registered suppliers, and in certain instances, tax is discharged under the Reverse Charge Mechanism (RCM). Further, the applicant declares that all the above expenses are incurred in the course or furtherance of business and are essential for functioning of used car business in a smooth manner. 4. In view of the above, the applicant has sought advance ruling in respect of the following question: ....
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....ax (Rate) dated 25.01.2018, as amended by Notification No. 04/2025-Central Tax (Rate) dated 16.01.2025, and submits that the expression 'such goods' is restricted to the specific goods listed in the Table under the said notification. Accordingly, the benefit of paying GST at 18% on the margin applies only to those notified second-hand goods and does not extend to any other goods or input services. 7.3 Further, the applicant relies upon Sections 16(1) and 17(5) of the CGST Act, 2017 to contend that the restriction to avail input tax credit under Notification No. 08/2018 applies only to 'such goods' covered therein, and does not affect eligibility to avail input tax credit on other goods and input services used in the course or furtherance of business. 7.4 The applicant submits that the phrase 'such goods' in the notification No. 08/2018 dated 25.01.2018 as amended clearly restricts the ITC bar only to the specified used motor vehicles covered therein. If the intention were to prohibit ITC on all goods or services, broader wording would have been used. Applying the principle of literal interpretation, the applicant argues that the restriction applies only to ITC on the said goo....
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....costs, professional fees, and other business expenditures that are otherwise admissible under the GST law. 8. PERSONAL HEARING PROCEEDINGS HELD ON 20.11.2025 Mr. R.K. Suchindra, CA, Authorised Representative of the applicant appeared for personal hearing proceedings held on 20.11.2025, before this authority and reiterated the submissions already made along with the application. Further, Authorised Representative furnished additional submissions vide letter dated 13.11.2025, along with sample invoices relating to expenses such as refurbishment services, marketing and advertising services, professional fees, housekeeping services, rent, office expenses, software subscriptions, manpower recruitment and staffing services and capital goods such as laptops, office equipment, and furniture. FINDINGS & DISCUSSION 9. At the outset we would like to make it clear that the provisions of the CGST Act, 2017 and the KGST Act, 2017 are in pari materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean referen....
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....epresents the margin of the supplier shall be the difference between the consideration received for supply of such goods and the depreciated value of such goods on the date of supply, and where the margin of such supply is negative, it shall be ignored; and (ii) in any other case, the value that represents the margin of supplier shall be, the difference between the selling price and the purchase price and where such margin is negative, it shall be ignored. 2. This notification shall not apply, if the supplier of such goods have availed input tax credit as defined in clause (63) of Section 2 of the Central Goods and Services Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods. 11.2 Hence, we are in the view that, the above said notification applies only to the supply of "such goods", i.e., old and used motor vehicles specifically described in Column (3) of the Table appended to the notification. Para 2 of Notification states that the notification shall not apply where the supplier has availed input tax credit on such goods. The expression "such goods" is a referential term an....