Renting/leasing of agriculture machinery, Goods and Services Tax - GST

[KARAN VERMA]

Whether GST applicable on renting/leasing of harvester/ combine for agriculture purpose.

whether company cllaim ITC on purchase of harvester/combine.

Posts / Replies

[KASTURI SETHI]

(1) Renting/leasing of agricultural machinery is exempted from GST vide Notification No.12/17-CT(R) dated 28.6.17 as amended up to 30.9.19 at Serial no.54(f) HSN 9986 and Notification No.11/17-CT(R) dated 28.6.17 as amended up to 22.11.19 at Serial no.24 (d). Conditions mentioned therein are to be fulfilled.

(2) Since harvester/combine (agricultural machinery) is to be used for supplying exempted service, ITC is not admissible. If used for taxable output supply of service, ITC is admissible (if supply of service is in exclusion clause).