TaxTMI 
TaxTMI 
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
hire purchase transaction - gst
01 Feb 2020 
3 Replies 
6287 Views Asked by
Supply of goods on hire purchase: GST applies and invoice/Eway must state the goods' transaction value.
Under a hire purchase contract the eventual transfer of title means the arrangement is treated as a supply of goods for GST; GST applies and the supply should be classified accordingly. A tax invoice must be raised showing the transaction value (the amount charged or to be charged for the goods), and the eway bill should record the machine's value as that transaction value. (AI Summary)
Under a hire purchase contract the eventual transfer of title means the arrangement is treated as a supply of goods for GST; GST applies and the supply should be classified accordingly. A tax invoice must be raised showing the transaction value (the amount charged or to be charged for the goods), and the eway bill should record the machine's value as that transaction value. (AI Summary)