GST on used car by compay

[HASMUKH PATEL]

Dear Sir,

We are manufacturer and launch scheme for employee. We provide car to employee for company and personal use under agreement/ scheme of 4 years. Under scheme the employee pay 52% and we employer pay 48% of EMI. We don't claim of ITC but ,book the cars in our account and claim the depreciation under income tax act. After complication of 4 year we transfer the car to employee.

Now the question is that any GST is applicable on it after 4 year at the transfer of car to employee ?.

AI Summary

GST on employer to employee transfer: transfer may attract GST if treated as supply in furtherance of business under GST law.
Whether transfer of employer held motor vehicles to employees after a multi year scheme constitutes a taxable supply depends on existence of consideration and whether the transfer is in the course or furtherance of business; if treated as supply, valuation and taxability may be affected by margin scheme rules, denial of input tax credit for motor vehicles, capitalization and depreciation treatment, and guidance distinguishing gifts and contractual perquisites.