Karnataka AAR Clarifies GST Margin Scheme Applicability for Second-Hand Car Dealers Under Rule 32(5) and Notification No. 8/2018
The Karnataka Authority for Advance Ruling has clarified that GST on the sale of second-hand cars is to be calculated on the margin between selling and purchase price, as per Rule 32(5) of the CGST Rules and Notification No. 8/2018, provided all prescribed conditions are met. The exact tax rate depends on vehicle-specific details not furnished by the applicant.
