GST under reverse charge on car lease

[Kaustubh Karandikar]

Invoice issued by XYZ to PQR Ltd. towards Car Lease charges. The car is taken on lease by PQR and is used by the employee. Other expenses like petrol and maintenance are included in the amount charged towards lease. The car is owned by Wife of employee. Is PQR required to pay GST under reverse charge on the amount paid to XYZ?

[Ganeshan Kalyani]

In my view, leasing service is not covered under reverse charge notification. The service provider to charge GST on invoice.

AI Summary

PQR Ltd. not liable for reverse charge GST on car lease; service provider must charge GST. An invoice was issued by XYZ to PQR Ltd. for car lease charges, which include expenses like petrol and maintenance. The car, used by an employee, is owned by the employee's spouse. The query raised was whether PQR is required to pay GST under reverse charge on the lease amount. The response indicated that leasing services are not covered under reverse charge notification, and the service provider should charge GST on the invoice.