GST in case of leasing of Electronic Vehicles (Cars)

[Rajat Maheshwari]

Hi

My client is engaged in leasing of EV's (Cars) without operator. We are using SAC code 9973 for the same. Under 9973, GST rate is the "same rate of CGST/SGST as on supply of likewise goods in case of transfer of title".

Queries:

1. Can we use 9973 sac code for the above transaction ?

2. If we can use 9973, can we charge 5% GST rate on the leasing transaction as it is the rate in case of sale of EV ?

[Shilpi Jain]

Leasing of vehicles will be covered under HSN 9973 and would be liable at the rate applicable for the vehicle that is leased.

AI Summary

Leasing of electric vehicles: GST to be charged at the rate applicable to the leased vehicle under SAC 9973.
Leasing of electric passenger vehicles without operator is classifiable under SAC 9973, and GST is to be charged at the same rate that applies to the supply of the like vehicle being leased, meaning the lease attracts the vehicle-specific GST rate rather than a separate generic leasing rate.