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

Reverse charge on leasing services not triggered; supplier must invoice and collect GST on car lease. Leasing services for a car used by an employee, including petrol and maintenance charged by the lessor to the corporate lessee, do not fall within the reverse charge notification; the service provider must charge and collect GST on the invoice.