Reduced rate of Central Tax tax (CGST) on the leasing of motor vehicles - where purchased and supplied on lease before 1.7.2017 - 37/2017 - Central GST (CGST) Rate

Reduced CGST rate for leased motor vehicles where vehicles were acquired and leased under transitional purchase conditions.

Reduced central tax applies to motor vehicles in Chapter 87 at sixty-five percent of the otherwise applicable central tax where vehicles were purchased before 1 July 2017 and supplied on lease before that date, subject to conditions. Eligibility is limited to vehicles acquired pre-1 July 2017 and either (a) purchased by the lessor and leased before that date, or (b) supplied by a registered person who purchased pre-1 July 2017 and did not claim input tax credits for central excise, VAT or other taxes on the vehicle. The notification ceases to apply on or after 1 July 2020.