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How to levy GST on rental equipments?

807 views 3 replies

Pushe

41 Points Posted on 09 June 2017

Hello All,

Our compnay provides some devices(18% GST slab) to restuarants on 18 months contract ,collecting rental each month and after 18 months devices belows to restuarants.

So how to caary out GST taxation in this?

Do we need to collect monthly GST?

Regards

Replies (3)

Preeti (Team_GSTSoln)

Team GST Experts

1926 Points Posted on 09 June 2017

you are providing rental facility to restaurant covered under services. you have to charge gst on monthly basis applicable on supply of services i.e. same 18% in your case (covered under schedule II) . at the time of sale , you will charge gst on sale value of device.you can claim input available to you

Pushe

41 Points Posted on 09 June 2017

at the time of sale , you will charge gst on sale value of device.you can claim input available to you
-- > We take rent for 18 months and after 18 months ,client becomes owner of the products witohout any extra cost , means we just give them only rental invoices , or is there some need of SALE invoice also ?
if yes,how can we make sale invoice,if no exra cost expect 18 nmonths RENTAL is taken from client