GST RATE OF TAX ON MOVEMENT OF RIGS, TOOLS AND SPARES AND ALL GOODS ON WHEELS LIKE CRANES
The Goods and Services Tax
Act, 2017 came into force with effect from 1.7.2017 in India.
The Central Government has
clarified that inter-state movement of rigs, tools and spares, and all goods on
wheels [like cranes] was discussed in GST Council’s meeting held on 10th
November, 2017 and the Council recommended that the circular 1/1/2017-IGST
shall mutatis mutandis apply to inter-state movement of such goods, and except
in cases where movement of such goods is for further supply of the same goods,
such inter-state movement shall be treated ‘neither as a supply of goods or
supply of service,’ and consequently no IGST would be applicable on such
movements. The Central Government has also reiterated that applicable
CGST/SGST/IGST, as the case maybe, is leviable on repairs and maintenance done
for such goods.
The relevant Central
Government Notification is given below for ready reference.
F. No. 354/320/2017 –TRU (Pt )
Government of India Ministry of
Finance
Department of Revenue
Tax Research
Unit
To,
North Block, New Delhi
Dated the 22nd of November,
2017
The Principal Chief Commissioner/Chief Commissioners/ Principal Commissioner/
Commissioner of Central
Tax
(All) / Director General of Systems
Subject: Clarification on Inter-state movement of rigs, tools and spares, and all goods
on wheels [like cranes]- regarding.
The issue of IGST exemption on inter-state movement of various modes of conveyance, between distinct persons as specified in section 25(4)
of the Central Goods and Services Tax Act, 2017, carrying goods or passengers or both; or for repairs and maintenance,
[except in cases where such movement is for further supply
of the same conveyance] was
examined and a circular 1/1/2017-IGST dated 7.7.2017, was issued clarifying that such inter-
state movement shall be treated “neither as a supply of goods nor supply of service” and
therefore would not be leviable
to IGST.
2. The issue pertaining to inter-state
movement of rigs, tools and spares, and all goods
on wheels [like cranes] was discussed in GST Council’s meeting held on 10th November, 2017 and the Council recommended that the circular 1/1/2017-IGST shall mutatis mutandis
apply to inter-state movement of such goods,
and except in cases where movement of such goods is
for further supply of the same goods, such inter-state movement shall be treated ‘neither as
a supply of goods or supply of service,’ and consequently no IGST would be applicable on such
movements.
3. In this context, it is also reiterated that applicable CGST/SGST/IGST, as the case maybe, is leviable on repairs and
maintenance done for such goods.
4. Difficulty if any, in the implementation of the circular should be brought to the notice
of the Board. Hindi version would follow.
(Ruchi Bisht) Under
Secretary (TRU)