Car Lease GST

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This query is : Resolved

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A car owner who purchased a vehicle under a lease plan in 2016 within an SEZ zone is questioning the applicability and rate of GST on the residual value. While GST wasn't applied to EMIs due to the SEZ registration, the lease company is now demanding GST on the residual value. The owner seeks clarification on whether GST applies to residual values in SEZ zones and the correct percentage, as they were quoted 28% plus cess.

Suresh Kumar

Suresh Kumar (Querist)
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08 September 2021 Dear Sir,

I bought the car under lease plan on 2016 which is registered under SEZ zone, where the GST is not applied for EMI's now for the Residual Value (RV) of 25% (which is 1,15,000) for Wagnor car, the car lease team is asking to pay GST for 28% of around 35000 (including cess).

My query, Is GST applicable for RV which is under the SEZ zone as well what is the GST % (is it 28%)?

Thanks,
Suresh

Lekhraj sood

Lekhraj sood (Expert)
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09 September 2021 Car lease company needs to pay GST @12% on the old car and not the supplier who is SEZ.

Suresh Kumar

Suresh Kumar (Querist)
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09 September 2021 Thanks for your reply sir, one clarification, i bought new car wagnor on 2016 before GST was there, but the car is registered under the SEZ zone, now the car lease company is charging 28+1 % (GST + CESS) for the RV value which is 25% is 1,15,545. I am hoping your ansser is holds good for this query also.

Suresh Kumar

Suresh Kumar (Querist)
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13 September 2021 Please sir, can you provide answer for my query? Thanks in Advance!

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