Rate of Tax for Hiring of machinery

[T.K. CHANDRASEKARAN]

What will be the Rate of Tax under GST for Hiring of Machinery & Equipment without transfer of active possession (not lease) ? Renting of machinery where ever the active possession passed on from the person hiring to the person using the machinery on hire will be a LEASE transaction. So, in this case, it is not a lease.

AI Summary

Clarification on GST rate for hiring machinery: 18% under 'Other Services' vs. rate based on specific machinery type. A query was raised regarding the applicable GST rate for hiring machinery and equipment without transferring active possession, distinguishing it from a lease transaction. One participant clarified that such hiring is categorized under Service Accounting Code 9973. Another participant questioned whether it should be taxed under 'Other Services' at 18% or as a lease, which would be taxed based on the specific machinery type. A third participant noted that under GST and Service Tax Law, there is no distinction between leasing and renting.