GST ON TRACTOR RENT

if registered person hire a tractor and pay tractor rent per month and deduct TDS,

is there GST applicable or Not on tractor Rent ,if tractor owner is unregistered

we pay RCM ?

Replies (2)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) implications when hiring a tractor. It explains that if a registered person rents a tractor and deducts TDS, GST is generally applicable. However, if the tractor owner is unregistered and their total annual turnover is below the GST threshold (20 lakhs), then Reverse Charge Mechanism (RCM) does not apply, and no GST is payable on the rent.

If tractor owner is unregistered and all his receipts from supplies are below 20 lakhs including rent then there is no GST liability

RCM not applicable for tractor rent.

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