GST on buyback of leased CAR from Company

My employer has CAR lease policy.  Since we don't have office in Hyderabad the CAR was purchased, Invoiced and registered on my name. There is lease agreement between TATA capital and myself for this car.  There is compulsory buyback of CAR with Residual Value of 15% after completion of 4 years.  After 4 years do I need to pay GST on Residual value of 15% of the CAR.  I believe the GST should not be charged since the car is registered in my name and as per the Definition of GST supply the car doesn't fall under supply since the title is on my name.  Tata capital is charging GST on  15% of residual value which looks to be double taxation to me. If the CAR was in TATA name then it is valid supply.  GST experts advise is appreciated. 

 

 

 

Replies (5)
Quick Summary
This discussion explores whether Goods and Services Tax (GST) is applicable on the residual value when buying back a leased car. The original poster questions the charge of GST on the 15% residual value by Tata Capital, arguing that since the car is registered in their name, it shouldn't constitute a supply under GST. However, experts clarify that GST is indeed applicable as the lease agreement with Tata Capital implies a supply in furtherance of business, even with the car registered in the individual's name.

Yes you do require to pay GST on Residual value of 15% of the Car.

Even though the car is registered in your name but as per the agreement it being hypoticated by TATA . If suppose you defaulted in payment , TATA has right to recover it by selling to any other person.

So Tata as a registered person collecting Lease amount plus 15% after 4 year on residual value is supply in GST .
As per Section 7 , it's an supply ,, it involves consideration in course & furtherance of Business. , hence GST is applicable.

And As per Notification 11/2017 CT(R) , entry no. 17(viii) Leasing Services attract GST Rate  18%

And As per Notification 11/2017 CT(R) , entry no. 17(viii) Leasing Services attract GST Rate  18%

I am planning to buy back the leased car from my own company which I was using for the last 4 years.

The leasing company is invoicing me 28% GST () & 17% CESS on the buyback value. Is it a valid tax calculation? I understood that old cars should have 18% GST only. 

Please clarify and help in countering them incase they are charging me inappropriately 

I had a question on the above subject. How the buy back amount is calculated is the lease was of 4 years & I left the company in 30 months.

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