AAR, Margin Scheme for second hand goods excludes repair costs, no ITC on improvements: Case of Jitendra Equipment , AAR Gujarat Ruling Dated 22nd March 2025. The applicant is a trader of construction machinery, who plans to expand into dealing in second-hand goods. The ruling focused on the applicability of the margin scheme under Rule 32(5), which allows for GST to be levied on the difference between the selling and purchase price of second-hand goods, provided no input tax credit (ITC) is claimed. AAR ruled that the purchase price under the margin scheme does not include repair or improvement costs. Consequently, ITC cannot be claimed on these repair or improvement expenses if the margin scheme is utilized. (AAR Gujarat Ruling Dated 22/03/2025)