INCOME FROM RENT COLLECTION OF TIPPER, Goods and Services Tax - GST

A contractor registered under GST also having hire collection from one Tipper truck. What is the GST Liability on his collection from Tipper?

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1 Dated: 23-12-2020 By:- KASTURI SETHI

18% Chapter/Heading No. 9973 .

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2 Dated: 25-12-2020 By:- Hemanth Kumar

There is some confusion created due to change in service classification and the rate of tax would be as follows

SAC	Description of service	Rate of tax
9973 -(Leasing or rental services without operator)	(iii) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.	Same rate of central tax as on supply of like goods involving transfer of title in goods
9966 (Rental services of transport vehicles [with operators]	[(iii) Rental services of transport vehicles with [***]56 operators, other than (i) and (ii) above.	18%

Regards

CA Hemanth Kumar

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3 Dated: 25-12-2020 By:- KASTURI SETHI

Here rate of supply of the same goods is applicable which is 18 % mentioned against 9973.

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4 Dated: 26-12-2020 By:- Renju Joy

Under Heading 9965

Services by way of transportation of goods-

(a) by road except the services of-

(i) a goods transportation agency;

(ii) a courier agency;

(b) by inland waterways. shall be treated as NIL rated. Kindly clarify.

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5 Dated: 26-12-2020 By:- KASTURI SETHI

9965 is not applicable here. This service falls under erstwhile "Right to use of tangible goods". Now under GST this service falls under 9973 and no exemption is available.

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6 Dated: 26-12-2020 By:- Renju Joy

Heading 9965 is Notified vide Notification No. 12/2017- Central Tax (Rate) which states that service by way of transportation of goods is a NIL rated supply. Kindly clarify.

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7 Dated: 26-12-2020 By:- KASTURI SETHI

See Notification No.20/19-CT(R) dated 30.9.19 (Serial No.h) amending original notification no.11/17-CT(R) dated 28.6.17 (serial no.viia and viii). Leasing or renting of goods. Tipper has been treated as goods. Whether you go for (viia) or (viii) rate of GST is 18% in both ways. In my view, here supply is covered under (viia). No question of nil rate arises.

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8 Dated: 26-12-2020 By:- CA HemanthKumar

Yes, said exemption entry is for transportation of goods. In case if your services falls under the said category i.e. you have agreed to provide transport services i.e. picking and delivery services instead of renting of truck on monthly basis , exemption can be applied.

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9 Dated: 27-12-2020 By:- KASTURI SETHI

Exemption is available if hired to GTA. Serial No.22 of Notification No.12/17-CT(R) refers.

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