Advance Ruling- Classification of Supply- M/s Dream Road Technologies Private Limited (hereinafter referred to as the “Applicant”) is a Car leasing Company with the name “PumPumPum”. The Applicant provides the private number (White Plate) of pre-owned cars on lease to the individuals. The Applicant is engaged in providing pre-owned vehicles obtained from different modes of supply on operating leases to its customers.  The Applicant enters into different Motor Vehicle Lease Agreements (“MVLA”) with its customers depending upon the type of customer. For instance, in the case of individual customers, normal Lease Agreements shall be executed. However, for other than individual clients two agreements are entered one is Master Lease Agreements and the other is a Tri-Party Agreement. Following question is raised for advance ruling:- 

a) Whether GST Rate and HSN applicable to the monthly lease fees received from customers for leasing pre-owned Cars would be determined in accordance with serial no. 17 (viia) of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017 read with Notification No. 08/2018-Central Tax (Rate) dated 25th January 2018? If not, then what would be said GST rate and HSN so applicable on the said transaction?

b) Whether Compensation cess applicable to the monthly lease fees received from customers for leasing of pre-owned Cars would be determined in accordance with serial no. 42A of Notification No. 01/2017- Compensation cess (Rate) dated 28th June 2017? If not, then what about the said Compensation cess so applicable on the said transaction?

Authority for Advance ruling, Haryana held that:-(a) No, the applicable rate of tax on the supply made by the applicant is to determined in accordance with serial no. 17(vi) of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017 as amended.(b) No, The applicable rate of tax is as Notification No. 01/2017-Compensation cess (Rate) dated 28th June 2017.