When GST came into place some years back, the sale of old and used motor vehicles got a significant hit because they were taxed at the same rate as new motor vehicles. It was capped at 28% GST plus Cess (as applicable). At the start of 2018, the government issued a new notification. Dates 25-1-8, the notification gave major relief to sellers of used/old cars. Depending upon the category, the GST now applicable ranges from 18% to 12%, which has made buying used vehicle affordable. Furthermore, another notification was issued under the Compensation Cess (Rate) that stated all sales of old and used vehicles would be exempt from Cess. The only question left to answer was the valuation of the vehicle. In simpler words, at what value will GST be applied. The. Notification No. 8/2018 by Central Tax (Rate) provides detailed information about the same. In most instances, the value of supply is equivalent to the margin of supply, and on this amount, GST is applicable. Two cases
