Notification No. 37/2017 - Central Tax (Rate) Explained

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Notification No. 37/2017 - Central Tax (Rate): Seeks to prescribe Central Tax rate on the leasing of motor vehicles.

GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY PART II, SECTION 3, SUB-SECTION (i)]

G. S. R. (E).- In exercise of the powers conferred by sub-section (1) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council,

hereby notifies the central tax on intra-State supplies of goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as the case may be, as specified in the corresponding entry in column (2), of the Table below, at the rate specified in corresponding entry in column (4) and subject to relevant conditions annexed to this notification, if any, specified in the corresponding entry in column (5) of the Table aforesaid:

TABLE

Sl. No.	Chapter, Heading, Sub- heading or Tariff item	Description of Goods	Rate	Condition No.
(1)	(2)	(3)	(4)	(5)
1.	87	Motor Vehicles	65% of central tax applicable otherwise on such goods under Notification No. 1/2017- Central Tax (Rate) dated, 28^th June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub Section (i), vide G. S. R. 673 (E) dated the 28^th June, 2017.	1
2.	87	Motor Vehicles	65% of central tax applicable otherwise on such goods under Notification No. 1/2017- Central Tax (Rate) dated, 28^th June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub Section (i), vide G. S. R. 673 (E) dated the 28^th June, 2017.	2

2. Provided that nothing contained in this notification shall apply on or after1^st July, 2020.

Explanation –For the purposes of this notification, -

“Tariff item”, “sub- heading” “heading” and “Chapter” shall mean respectively a tariff item, heading, sub- heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

ANNEXURE

Condition No.	Condition
1.	The Motor Vehicles was purchased by the lesser prior to 1^st July, 2017 and supplied on lease before 1^st July, 2017
2.	The supplier of Motor Vehicle is a registered person.Such supplier had purchased the Motor Vehicle prior to 1^st July, 2017 and has not availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles

(Ruchi Bisht)
Under Secretary to
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 37/2017 – Central Tax (Rate)

Q1: What is Notification 37/2017 in GST?

Answer:
It prescribes a reduced GST rate (65% of normal rate) on leasing of motor vehicles purchased before GST.
This was introduced to avoid double taxation and support leasing businesses during transition.