A dealer acquires a second-hand car for ₹2,50,000 without taking input tax credit and sells it as such for ₹3,00,000. What is the taxable value under the applicable GST margin method?

Rule 32(5) of the CGST Rules, 2017 lets a person dealing in second-hand goods, who sells them as such without having taken input tax credit on purchase, pay tax on the margin: the difference between selling and purchase price, here ₹3,00,000 − ₹2,50,000 = ₹50,000. Taxing the full selling price ignores the margin scheme.