The transfer of assets on lease to his own branches having separate registrations in other States could be termed as “Lease” and accordingly taxable as supply of services.
Authority for Advance Ruling — GST on leased goods – The applicant is engaged in renting of re-usable unit load equipment for shared use. The applicant has sought advance ruling as to whether the pallets, crates and containers leased by the applicant located and registered in Karnataka to its other GST registration located across India would be considered as lease transaction and accordingly taxable as supply of services; if it is so, what is the value on which GST has to be charged i.e. whether it should be lease charges or the value of equipment; what are the documents that should accompany the movement of goods; whether movement of equipment can be said to be mere movement of goods not amounting to a supply.
Held that:- The Hon’ble Authority for Advance Ruling held that the pallets, crates and containers leased would be considered as lease transaction if the specific goods are sent on lease as per the agreement between the two entities and accordingly taxable as supply of services in terms of the provisions of the IGST Act read with Section 7 of the Act. The value declared in the invoice issued by the applicant would be the value on which GST has to be charged. The documents to be carried for the movement of goods would be delivery note and e-way bill for the entire value of the goods transported. The services of CIPL, Kerala to CIPL, Karnataka in facilitating the transportation of goods to CIPL, Tamilnadu are exigible to GST. The documents to be carried for the above movement is a delivery note and e-way bill issued.
The transfer of assets on lease to his own branches having separate registrations in other States could be termed as “Lease” and accordingly taxable as supply of services.
Authority for Advance Ruling — GST on leased goods – The applicant is engaged in renting of re-usable unit load equipment for shared use. The applicant has sought advance ruling as to whether the pallets, crates and containers leased by the applicant located and registered in Karnataka to its other GST registration located across India would be considered as lease transaction and accordingly taxable as supply of services; if it is so, what is the value on which GST has to be charged i.e. whether it should be lease charges or the value of equipment; what are the documents that should accompany the movement of goods; whether movement of equipment can be said to be mere movement of goods not amounting to a supply.
Held that:- The Hon’ble Authority for Advance Ruling held that the pallets, crates and containers leased would be considered as lease transaction if the specific goods are sent on lease as per the agreement between the two entities and accordingly taxable as supply of services in terms of the provisions of the IGST Act read with Section 7 of the Act. The value declared in the invoice issued by the applicant would be the value on which GST has to be charged. The documents to be carried for the movement of goods would be delivery note and e-way bill for the entire value of the goods transported. The services of CIPL, Kerala to CIPL, Karnataka in facilitating the transportation of goods to CIPL, Tamilnadu are exigible to GST. The documents to be carried for the above movement is a delivery note and e-way bill issued.