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Leasing of vehicles purchased and leased prior to 1st July, 2017 to attact GST @65% of applicable rate

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The Goods and Service Tax (GST) Council, at its 22nd meeting held here on October 6, decided that leasing of vehicles purchased and leased prior to July 1, 2017 would attract GST at a rate equal to 65% of the applicable GST rate (including Compensation Cess).
 
This has been done to provide relief to old/existing leases of motor vehicles, an official press release said.
 
Such vehicles when sold shall attract GST of 65% of the applicable GST rate (including Compensation Cess), it said.
 
Sale of vehicles by a registered person who had procured the vehicle prior to 1st July, 2017 and has not availed any Input Tax Credits of Central Excise duty, VAT or any other taxes paid on such motor vehicles, would also be subject to 65% of applicable GST rate (including Compensation Cess).
 
These rates would apply for a period of three years with effect from 1st July, 2017.
 
Notifications to give effect to the above would be issued shortly, the release added.
 
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