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Gst on lease

Rajarajan (AO) (272 Points)

23 October 2018

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?

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4 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 23 October 2018

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 )

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Rajarajan (AO) (272 Points)
Replied 25 October 2018

Thanks Mr Pankaj,

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

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 25 October 2018

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 .