hire income from agriculture farm equipments is taxable or not in indian gst
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Income earned from hiring out agricultural farm equipment in India is generally exempt from GST. This exemption is provided under Notification No. 12/2017, specifically at serial number 54(d). However, to qualify for this exemption, certain conditions outlined in the notification must be met. If the machinery is used for providing an exempted service, input tax credit (ITC) is not claimable. If it's used for a taxable output service, ITC is admissible.
Renting/leasing of agricultural machinery/equipment is exempted from GST vide Notification No.12/17-CT(R) dated 28.6.17 (conditions mentioned therein are to be fulfilled)
Since agricultural machinery/equipment is to be used for supplying exempted service, ITC is not admissible. If used for taxable output supply of service, ITC is admissible.
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