Second-Hand Goods: Margin Scheme Excludes Repair Costs; No ITC on Improvements

In re Jitendra Equipment (GST AAR Gujarat)

The Gujarat Authority for Advance Ruling (AAR) addressed the GST implications for Jitendra Equipment, a trader of construction machinery, who plans to expand into dealing in second-hand goods. The ruling focused on the applicability of the margin scheme under Rule 32(5) of the CGST Rules, 2017, which allows for GST to be levied on the difference between the selling and purchase price of second-hand goods, provided no input tax credit (ITC) is claimed. The AAR clarified that the applicant can opt for this margin scheme for their second-hand

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