GST officials in UP issue notice to infrastructure companies

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In Uttar Pradesh , the issue has been raised on whether a company that rents out heavy infrastructure equipment for projects needs to register in each state where the machinery is used.

Over this issue , Officials in Uttar Pradesh issued notices to several infrastructure companies , in this regard , that lease heavy equipment such cranes for projects. The officials have questioned as to why the leasing companies were not registered within the state. 

It is expected that it could lead to other states too asking such companies to register in their jurisdictions and pay goods and services tax accordingly. At present, the equipment typically is owned by a company but leased across India for various projects , so , GST is paid on the lease is based on the location of the service provider. 

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