GST on buyback of car lease

My company is having office in Chennai and has car leased policy. We don’t have office in Hyderabad but we work in Hyderabad. I have leased the Car in May 2019 after GST implementation. The car was leased from Tata capital and car was registered in my name since we didn’t have office in Hyderabad. There is lease agreement between my company and me so that company can get tax benefits. Now 48 months of lease is going to be over and I need to buy back car with 15% residual value on exshowroom. Tata capital is charging gst plus cess for this buy back and removal of hyphotication. I believe since the car is registered in my name GST should not be charged since there will not be sale transaction only removal of hyphotication and paying 15% residual charges to Tata capital. But Tata capital is considering this as sale transaction and charging GST where actual ownership is not changed. Could your please provide your expert advice on this GST charges where there is no sale 

Replies (2)
Quick Summary
A company operating in Chennai with a car leasing policy is seeking clarification on GST charges for buying back a leased car. The car, registered in an employee's name due to no Hyderabad office, is nearing the end of its 48-month lease. The leasing company, Tata Capital, is charging GST and cess on the buyback, treating it as a sale. The employee believes GST shouldn't apply as actual ownership isn't changing, only the removal of hypothecation and payment of residual value.

Drop a PM
Reply if you have some answer, don't just play games by putting same reply on each post.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details