GST ON TRACTOR RENT

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.