CBEC’s Circular clarifies interstate movement of rigs, tools, spares and all goods on wheels

GST dated 22.11.2017 is issued to clarify on Inter-state movement of rigs, tools and spares, and all goods on wheels [like cranes].

Circular No. 21/21/2017-GST

F. No. 354/320/2017 TRU (Pt )
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit

North Block, New Delhi
Dated the 22nd of November, 2017

To,
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 goodson wheels [like cranes]- regarding.
1. The issue of IGST exemption on inter-state movement of various modes ofconveyance, between distinct persons as specified in section 25(4) of the Central Goods andServices 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 interstatemovement shall be treated neither as a supply of goods nor supply of service andtherefore would not be leviable to IGST.
2. The issue pertaining to inter-state movement of rigs, tools and spares, and all goodson wheels [like cranes] was discussed in GST Councils meeting held on 10th November, 2017and the Council recommended that the circular 1/1/2017-IGST shall mutatis mutandis applyto inter-state movement of such goods, and except in cases where movement of such goods isfor 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 suchmovements.
3. In this context, it is also reiterated that applicable CGST/SGST/IGST, as the casemaybe, 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 noticeof the Board. Hindi version would follow.

(Ruchi Bisht)
Under Secretary (TRU)