Minor Refurbishment of Used Cars Doesn’t Change Nature as Second-Hand Goods; GST Payable Only on Margin: AAR

HomeGSTMinor Refurbishment of Used Cars Doesn’t Change Nature as Second-Hand Goods; GST...

Minor Refurbishment of Used Cars Doesn’t Change Nature as Second-Hand Goods; GST Payable Only on Margin: AAR

GST Top Stories

Published on

16/03/2026

By Mariya Paliwala

Minor Refurbishment of Used Cars Doesn’t Change Nature as Second-Hand Goods; GST Payable Only on Margin: AAR

🚀 Stay Connected With JurisHour

WhatsApp X Telegram

The Authority for Advance Ruling Karnataka (AAR) has clarified that minor refurbishment carried out on used motor vehicles before resale does not alter their character as second-hand goods, thereby allowing dealers to pay Goods and Services Tax (GST) only on the margin earned from such transactions. The bench of Kalyanam Rajesh Rama Rao and Sivakumar…

Membership Required

You must be a member to access this content.

View Membership Levels

Already a member? Log in here

Mariya Paliwala https://www.jurishour.in/

Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

Tags
Minor Refurbishment

Minor Refurbishment of Used Cars Doesn’t Change Nature as Second-Hand Goods; GST Payable Only on Margin: AAR

Membership Required

Latest articles

CBIC Releases FAQs on Duty Deferment Scheme for Eligible Manufacturer Importers to Boost ‘Make in India’

GST Payable on Corpus Fund at Time of Collection; Electricity Charges for Common Areas Taxable as Part of Maintenance Services: AAR

Corpus Fund Collected by Apartment Owners’ Association Is ‘Supply’, GST Payable at Time of Collection; Rs. 7,500 Monthly Exemption Not Applicable: AAR

CBDT Orders Transfer of 3 Chief Commissioners / DGIT-Level Officers; Additional Charge Assigned

More like this

CBIC Releases FAQs on Duty Deferment Scheme for Eligible Manufacturer Importers to Boost ‘Make in India’

GST Payable on Corpus Fund at Time of Collection; Electricity Charges for Common Areas Taxable as Part of Maintenance Services: AAR

Corpus Fund Collected by Apartment Owners’ Association Is ‘Supply’, GST Payable at Time of Collection; Rs. 7,500 Monthly Exemption Not Applicable: AAR

About us

Company

Categories