GST on Used Car Sale by Manufacturer Payable on Full Value, Not Margin: AAR Tamilnadu

Tvl. Paranthaman Engineering Works (Prop: Ponnusamy Thangaraj) (GST AAR Tamilnadu) In GST AAR Tamil Nadu, the Authority examined whether GST on the sale of a used car by a registered manufacturing concern should be levied on the margin or on the full sale value. The applicant had purchased a new car for the proprietor’s use, capitalised it in business books, did not claim input tax credit, and had not availed depreciation. On deciding to sell the car as a used vehicle, the applicant sought applicability of the margin-based valuation under Notification No. 8/2018-CT (Rate) read with Rule 32 o...