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??

[Ganeshan Kalyani]

GST @18% is applicable.

[Renju Joy]

Sir If the turnover is 1crore & is registered under composition scheme paying GST @1%.This cement dealer also supply renting of JCB & Tipper for 4lakh.What is the GST applicable?

[Alkesh Jani]

Shri

In this case please refer 2nd proviso to Section 10(1) of CGST Act,2017.

Thanks

[KASTURI SETHI]

Renting of machinery will attract GST@18% as opined by Sh.Ganeshan Kalyani Ji. The dealer has opted for Composition Scheme for goods and not for services. Turnover of service (renting) should not exceed Rs.five lakhs. It is 10% of turnover or Rs.five lakhs, whichever is higher. Supplying service to the extent mentioned above is additional facility for Composition Dealer. 1% is not applicable to supply of service.

I support the views of Sh.Alkesh Jani Ji and Sh.Ganeshan Kalyani Ji.

[Renju Joy]

His service is limited to 4lakh

[Ganeshan Kalyani]

Thanks Sri Kasturi Sir.

AI Summary

Renting of machinery is a taxable service treated as a standard-rated supply attracting GST; composition for goods doesn't apply. Renting of machinery such as JCBs and tippers is a taxable service distinct from goods and attracts the standard GST rate for services. A dealer on the composition scheme for goods cannot apply the composition levy to services; service turnover must be measured against the statutory service turnover threshold and, if not within that facility, the composition rate for goods does not apply to renting services.