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

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

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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

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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…

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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.

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

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