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Gst on lease

185 views 4 replies

Rajarajan

272 Points Joined June 2009

We have GSTIN only in Tamilnadu and have planned to purachse .hydroponics materials from the vendors for Noth India & lease to a related party in Karnataka.

Can I adopt Bill To Ship To model to transfer the materials to Karnataka? or should the materials should reach my factory and then transfer it to Karnataka using 0% IGST using eway bill.

Can I raise IGST invoice for lease/rental on the third party (lessee) on monthly basis?.

Should the leased materials to be in our Fixed Asset?

Replies (4)

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

Yes , you can use the model Bill To , Ship To ,& Despatch From
Yes you can Raise IGST bill for Lease

As per Notificatfication 11/2017 CT (R) If goods posses a 0% cgst then the bill for lease also will be 0%GST (No GST will charge on Lease Bill )

Rajarajan

272 Points Joined June 2009

Thanks Mr Pankaj,

How about my ITC on the leased materials which I am proposed to buy

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

DEAR

THATS WHAT I STATED IF YOUR GOODS WHICH IS BEING LEASE OUT IS TAXABLE , THEN THE LEASE BILL YOU RAISE WILL BE TAXABLE & THE ITC CAN BE CLAIM ON ITS PURCHASE .