IGST Circular no. 01/01/2017 dated 07.07.17

Ankita Khetan | Jul 7, 2017 |

IGST Circular no. 01/01/2017 dated 07.07.17

IGST Circular no. 01/01/2017 dated 07.07.17

Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding


Circular No. 1/1/2017-IGST

F. No. 354/119/2017 TRU (Pt)
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit

North Block, New Delhi
Dated the 7th of July, 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 various modes of conveyance, carryinggoods or passengers or for repairs and maintenance- regarding

The issue relating to levy of IGST exemption on inter-state movement of variousmodes of conveyance, carrying goods or passengers or for repairs and maintenance, betweendistinct 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 wheresuch movement is for further supply of the same conveyance] has been examined.
2. In the above context, the legal provisions in GST laws are as under:

a) As per section 24 (1) (i) of the Central Goods and Services Tax Act, 2017, personsmaking any inter-State taxable supply shall be required to be registered under this Act.

b) As per section 25(4) of the said Act a person who has obtained or is required to obtainmore than one registration, whether in one State or Union territory or more than oneState or Union territory shall, in respect of each such registration, be treated as distinctpersons for the purposes of this Act.

c) Schedule I to the said Act specifies situations where activities are to be treated assupply even if made without consideration which also includes supply of goods orservices or both between related persons or between distinct persons as specified insection 25, when made in the course or furtherance of business

d) Section 7 (2) envisages that activities or transactions undertaken by the CentralGovernment, a State Government or any local authority in which they are engaged aspublic authorities, as may be notified by the Government on the recommendations ofthe Council, shall be treated neither as a supply of goods nor a supply of services.

3. Against the above background, the issue of inter-state movement of goods likemovement of various modes of conveyance, between distinct persons as specified in section25(4) of the said Act, not involving further supply of such conveyance, including

i. Trains,
ii. Buses,
iii. Trucks,
iv. Tankers,
v. Trailers,
vi. Vessels,
vii. Containers,
viii. Aircrafts,

(a) carrying goods or passengers or both; or (b) for repairs and maintenance, [except in caseswhere such movement is for further supply of the same conveyance] was discussed in GSTCouncils meeting held on 11th June, 2017 and the Council recommended that such inter-statemovement shall be treated neither as a supply of goods or supply of service and thereforenot be leviable to IGST.

4. In view of above, it is hereby clarified that the inter-state movement of goods likemovement of various modes of conveyance, between distinct persons as specified in section25(4) of the Central Goods and Services Tax Act, 2017, including the ones specified at (i) to(viii) of para 3, may not be treated as supply and consequently IGST will not be payable onsuch supply.

5. However, applicable CGST/SGST/IGST, as the case may be, shall be leviable onrepairs and maintenance done for such conveyance.

(Ruch Bisht.)
Under Secretary (TRU)


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