LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Rent machine with fuel

Anshuman Basu (account -GST) (1549 Points)

06 September 2023

Sir

We get a order from factory to provider JCB for Monthly Rent for Rs 1.5 lakh and Diesel as actual.

Now question is Should we charge gst on fuel charge?

is it is composite supply. pl help me

Reply
Follow
Share

9 Replies

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 06 September 2023

GST is not applicable on reimbursement of exp

RAJA P M ("Do the Right Thing...!!!") (127171 Points)
Replied 07 September 2023

If you are billing the fuel in the Service invoice then GST Will be charge...

If You are separately billing then GST not applicable...

sabyasachi mukherjee (26067 Points)
Replied 07 September 2023

No Gst on fuel , but in which state.

Rajendra Prasad (Employee Private) (1824 Points)
Replied 08 September 2023

You have to charge the JCB rent along with diesel consumption. This is Composite supply. Hence, has to charge GST on both the values.

Suresh Kumar (Account) (403 Points)
Replied 08 September 2023

As per Section 15(2)(b) of CGST Act- ''any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;

GST will be charged on Rental Income+ Diesel Charges. Various Court Judgement are also there which says that diesel charges will be included while discharging GST amount.

sabyasachi mukherjee (26067 Points)
Replied 09 September 2023

OK but in those states gst is not charged on fuel.
This judgement was existing long back.

RAJA P M ("Do the Right Thing...!!!") (127171 Points)
Replied 09 September 2023

@ Sabyasachi,

Yes, In some of states GST not applicable on Fuel. Don't confuse with this.
Check the query,
The querist not a dealer of Fuel. He made a supply with another supply (fuel) as composite. Hence GST chargeable on .....

1 Like