GST Tax Rates on Vehicles, Leasing and Fleet Management Services

With effect from July 01, 2017, vehicles will attract 28% tax. Depending on their size, a cess will be levied in 3
categories – 1%, 3% and 15%. Please refer the following table to check applicable tax rates.

Vehicle Specifications Proposed GST

Length Engine Capacity
Fuel CGST SGST CESS Total
(metres) (CC)
Petrol, CNG & <4 < 1200 14% 14% 1% 29%
LPG >4 > 1200 14% 14% 15% 43%
>4 < 1200 14% 14% 15% 43%
<4 > 1200 14% 14% 15% 43%
Diesel <4 < 1500 14% 14% 3% 31%
>4 > 1500 14% 14% 15% 43%
>4 < 1500 14% 14% 15% 43%
<4 > 1500 14% 14% 15% 43%
Electric No Limit No Limit 6% 6% 0% 12%

Tax on Vehicle Leasing

Taxes applicable on vehicle leasing will be the same as those applicable on vehicles as shown in the table above.

Tax on Fleet Management Services

Tax on Fleet Management Services will get revised from 15% to 18% with effect from July 01, 2017.

Illustration | Lease Rental and Service Charge differential

Vehicles bought in VAT regime and continue in GST era
For your existing vehicles on lease, new tax rates will apply with effect from July 01, 2017.

Lease Rental
Monthly Lease Monthly Lease Differential
Vehicle Ex- Tax Rate
Vehicle Rental with Rental with Monthly
Showroom (GST +
Specification VAT @ 14.5% GST (In INR) Lease Rental
(In INR) Cess)
(In INR) (In INR)
7,51,000 > 4m | Petrol 1373 cc 18,970 28% + 15% 23,690 4,720
8,35,600 < 4m | Petrol 1199 cc 21,880 28% + 1% 24,650 2,770
8,09,400 < 4m | Diesel 1396 cc 15,940 28% + 3% 18,240 2,300

With the application of new tax rates, monthly Lease Rentals will go up in the range of 10% - 25%.
Important Information | Invoicing & GST Numbers
Invoices for July Lease Rentals (dated June 2017) with VAT rates have been generated and sent to
you for payment processing. Please go ahead with the payment as per the due date.

Starting August (Invoices issued in July 2017 and thereafter), the new invoices would be as per the
GST structure and would include the new applicable tax rates.

Industry Representation for Transition Provisions

For existing vehicle leases, we may have a pressure of double taxation and increased tax burden on both,
leasing clients and leasing companies. We have made strong representations and are joined in the mission
by other industry players and associated organisations to make our case solid and receive a clear resolution
from the authorities.

Our case has been acknowledged and in case relief is provided, we will let you know.

LeasePlan India Private Limited

nd
2 Floor, Tower A, Millennium Plaza
Sector 27, Gurgaon 122002
www.leaseplan.co.in