hire purchase transaction - gst

[Richa Goyal]

How do we charge gst and raise invoices on a hire purchase transaction?

And what should be the value of a machine which is sent under a hire purchase transaction in the EWAY bill.

Regards

Richa Goyal

AI Summary

Clarification on GST and Invoicing for Hire Purchase: Declare Transaction Value on EWAY Bill as Per CGST Act Schedule II. A user inquired about charging GST and raising invoices for hire purchase transactions, as well as the appropriate value to declare on an EWAY bill for such transactions. A respondent clarified that goods supplied on a hire purchase basis are treated as a supply of goods due to the transfer of title at a future date. The transaction value should be stated on the invoice, which should be issued as usual. Another response noted that ownership transfers to the buyer upon the final installment, making GST applicable under Schedule II of the CGST Act.