Leas­ing of ve­hi­cles pur­chased prior to July 1 would at­tract 65 pc GST

The Hitavada - - HOME & ABROAD -

LEAS­ING of ve­hi­cles pur­chased prior to July 1 will at­tract a tax equiv­a­lent to 65 per cent of the cur­rent ap­pli­ca­ble GST rate for a pe­riod of 3 years, the Govern­ment said on Thurs­day.

The GST Coun­cil, com­pris­ing Union Fi­nance Min­is­ter Arun Jait­ley and state fi­nance min­is­ters, in its last meet­ing on Oc­to­ber 6 had de­cided to levy con­ces­sional rate for leased ve­hi­cle.

“Leas­ing of ve­hi­cles pur­chased and leased prior to July 1, 2017, would at­tract GST at a rate equal to 65 per cent of the ap­pli­ca­ble GST rate (in­clud­ing Com­pen­sa­tion Cess),” the fi­nance min­istry said in a state­ment. Also such ve­hi­cles when sold will at­tract GST of 65 per cent of the ap­pli­ca­ble GST (Goods and Ser­vices Tax) rate, in­clud­ing com­pen­sa­tion cess.

Sale of ve­hi­cles by a reg­is­tered per­son who had pro cured the ve­hi­cle prior to July 1,2017 and has not availed any in­put tax cred­its of cen­tral ex­cise duty, VAT or any other taxes paid on such mo­tor ve­hi­cles, will also be sub­ject to 65 pc of ap­pli­ca­ble GST rate, it added.

Th­ese rates would ap­ply for a pe­riod of three years with ef­fect from 1st July, 2017.

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