GST on sale of Second hand cars

This query is : Resolved 
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This discussion clarifies the Goods and Services Tax (GST) implications for individuals trading in used cars. Experts confirm that GST is applicable on the profit margin, not the full sale amount. The standard GST rate for this is 18%. Additionally, the threshold for GST registration is based on the profit margin, with a limit of 20 lakhs.

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(Querist)
27 December 2023 Dear Experts,

If an individual deals in Purchase and sale of used cars , then GST will be applicable on margin or sale amount?

Also in either case what will be the threshold limit for GST registration? I.e If margin then limit will be 20 lakhs of Profit?

Regards,
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
27 December 2023 Margin, limit will be 20 lacs.
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Dipen

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Dipen (Querist)
28 December 2023 Limit 20 lacs is margin amount or sale value of cars?

Also what will be GST Rate on the same?

Regards,
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
28 December 2023 It's margin amount and GST rate is 18%.
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