GST on rent of Road Roller

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If you're a GST-registered business renting out a road roller to a third party, you'll need to charge 18% GST on the rental income. Importantly, you can claim Input Tax Credit (ITC) on the GST paid when you purchased the road roller, provided renting machinery is part of your business.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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21 January 2023 Sir, one of my client (GST Registered) has purchased a Road Roller for Rs. 15.00 lac and had given it to third party (Unregistered) on monthly rent basis. What Rate of GST is payable by me client ? Whether my client can avail ITC paid on purchase of above road roller ?

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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21 January 2023 Yes, you can avail ITC if it is your business of renting of machinery/Vehicle and 18% is the GST rate for renting. your client has to pay GST.

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