TaxTMI 
TaxTMI 
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??
Renting of Tipper
22 Jun 2020 
6 Replies 
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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. (AI Summary)
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. (AI Summary)