GST Rate on buyback of Leased CAR

Rate / HSN codes 738 views 3 replies

I had CAR lease from Tata capital. When the CAR was originally purchased in 2018 the GST charged was 28% + 17% Cess. Now after completion of 4 Years the residual value of CAR is 15% of Exshowroom price. I need to pay this amount to TATA capital, they are charging 28% GST + 17% CESS on residual value of CAR.  I searched on various websites and found that the GST on 2nd hand car sale is 18% + CESS. But Tata is claiming that since the original Invoice has 28% GST and 17% CESS they will follow same.    GST experts can better provide the correct way to apply GST on used car.  Your comments are appreciated. 

 

Replies (3)
For Used car, the GST rate applicable is 12%-18% and there is no need to pay cess. Cess is exempted for second hand sale

Thanks David, Could you provide any notification or weblinks which I can share with TATA cap.

 

For use car the gst rate applicable is 12 to 18 persebt and these is no need to pay cess


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