Renting/leasing of agriculture machinery

[KARAN VERMA]

Whether GST applicable on renting/leasing of harvester/ combine for agriculture purpose.

whether company cllaim ITC on purchase of harvester/combine.

AI Summary

GST exemption for agricultural machinery rental excludes input tax credit unless machinery is used for taxable services.
Renting or leasing of agricultural machinery is exempt from GST under the cited notifications when prescribed conditions are met. Consequently, input tax credit on purchase of a harvester/combine used to provide the exempt service is not admissible; if the machinery is used to supply taxable services, ITC is admissible to the extent of taxable use.