Renting of Tipper

[Renju Joy]

A proprietary concern dealer in cement having a turnover above 2crore also supply the service of renting of JCB & Tipper. What is the GST implication of the supply of service of JCB & Tipper??

AI Summary

Dealer's Machinery Rental Subject to 18% GST; Composition Scheme for Goods Only, Service Turnover Limits Apply A proprietary cement dealer with a turnover above 2 crore, who also rents JCB and Tipper, inquired about the GST implications for these services. It was clarified that GST at 18% applies to renting machinery. If the turnover is 1 crore under the composition scheme, GST at 1% for goods does not apply to services. The service turnover should not exceed 5 lakh or 10% of total turnover, whichever is higher. The dealer's service is limited to 4 lakh, and the composition scheme covers goods, not services. The consensus supports the 18% GST rate for machinery rental.