Telangana AAR: 28% GST Rate on Rental / Leasing Charges for Industrial Equipments

Rental/leasing charges for industrial equipment supplied with operators dropping under HSN Codes: 84151090 would draw a 28% Goods and Service Tax, the Telangana Authority for Advance Ruling ( TAAR ) ruled.

The petitioner Ventair Engineers, manufactures machinery and equipment and is in the business of manufacturing refrigerating or freezing equipment for industrial use. They furnish Industrial Equipment falling under HSN Code: 84151090 on Rent/Leasing with Operators and are levying the GST tax at the exact rate pertinent to the new equipment sales as per the equipment’s HSN code which is furnished on Rent/Lease.

The petitioner has asked for the advance ruling concerning the Applicability of the GST Tax Rate on Rental / Leasing Charges for Industrial Equipments which the operators gave falling under HSN Code: 84151090.

On behalf of the applicant R.T.R.N. Bhan Sing Objected that the tax rate on Equipment ( HSN Code: 84151090 ) Rent/Leasing with Operator is 18% and not as per the GST tax rate of 28% applicable on the sale of new equipment under the HSN Code: 84151090.

A 28% Goods and Service Tax is drawn on the rental/leasing charges for industrial equipment provided by operators falling under HSN Codes:84151090, the two-member bench of Authority of Advance Ruling including S.V. Kasi Visweswara Rao ( Additional Commissioner Commercial Taxes ) and Sahil Inamdar, I.R.S ( Additional Commissioner Custom & Indirect Taxes ) witnessed.