Gst on capital goods

246 views 4 replies

Hello All,

 

I will be purchasing an equipment for leasing in West bengal which will be leased to a client in Orissa.

Purchase invoice will give CGST & SGST credit. Sales invocie needs to be raised from Kolkata address and place of supply as well as bill to is Orissa.

What will be the GST implications.

Also the equipment will be partly on bank finance so GST credit for that can also be offset if yes how.

Cost of Equipment  = 100+18(GST)  = 118

Monthly Lease rentals = 20 including GST.

Please explain with example.

Thanks in advance :)

Replies (4)

Dear.,

Please elaborate your query once again....

here your input will be 18 means GST of 100 and output will have lease rent tax
As per section 10(1)(d) of IGST Act 2017, the place of supply would be the place of assembly i.e Orissa so on the above transaction IGST need to be charged as per section 5 of IGST act 2017
Yes igst applicable.

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