GST on used cars

Valuation aspect

According to Rule 6(5) of the determination of the value rules in GST if a person deals in second hand goods on which ITC then the value shall be computed between difference between the selling price than purchase price and where such values negative it shall be ignored. Thus tax shall be levied on positive margins on you  and yes this is also in case where the person you bought from doesn’t pays GST. 
Rate

It's the same on new cars but the concept is leving only on the margins and not the Sale price or should I call it Transaction value. Now the dealers have to pay a one-time tax of 28% – 43%. Used car dealers have to pay GST only on their margin, and can avail of input tax credits. In the short run, this extra tax will imply a huge cost burden on the dealers. Ironically, they can not increase the price of the cars as that will have an adverse impact on the sales, especially since new cars are going to cost less. The only possible solution is to reduce the input cost, by buying cars from sellers at a lower price. For example, a seller who would have expected to get Rs 3 lakhs for a car before July might be offered much less now.