Treatmemt of Rent/ hire of machinery

[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

[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.

AI Summary

Rental of machinery treated as taxable supply; GST requires tax invoice and payment, billed as per rental terms.
Renting out machinery by a registered dealer to another registered dealer constitutes a taxable supply under the definition of supply, including rental and lease. GST applies; the supplier must raise a tax invoice, calculate GST on the rental consideration, and remit the tax to the government. Invoicing follows contractual terms and, if rent is monthly, a tax invoice should be issued monthly.