Treatmemt of Rent/ hire of machinery, Goods and Services Tax - GST

[BIBHUTIBHUSAN PATTANAIK]

Sir

sub-

A reg. dealer having machine want to let out his machine to a Reg dealer, how can i give effect in both parties

Posts / Replies

[Ganeshan Kalyani]

Sec 7(a) of CGST Act, 2017 states as, " all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;"

GST is applicable on renting out the machinery to another registered dealer. Tax invoice shall have to be raised. Applicable GST need to be paid to the Gvt

 

 

[YAGAY AND SUN]

Depending on the term & conditions if rent is being on monthly basis then you need to raise an Tax Invoice on Monthly basis under the provisions of GST Laws.