Margin Scheme Restricts ITC Only on Used Vehicles, Not Other Inputs: AAR Kerala

In re Goexotic Plus91 Motors Private Limited (GST AAR Kerala) The Authority of Advance Ruling, Kerala examined the admissibility of Input Tax Credit (ITC) for a registered company engaged in buying and selling second-hand motor vehicles, primarily used luxury cars. The applicant procures vehicles from registered and unregistered persons and undertakes minor repairs, refurbishment, and replacement of spare parts to enhance resale value without changing the nature of the vehicles. For outward supplies, the applicant proposed to adopt the special valuation mechanism under Rule 32(5) of the CGST R...