F. No. 354/320/2017 –TRU (Pt )
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 22 of November, 2017
To,
The Principal Chief Commissioner/Chief Commissioners/ Principal Commissioner/ Commissioner of Central Tax (All) / Director General of Systems
- ubject: Clarification on Inter-state movement of rigs, tools and spares, and all goods on wheels [like cranes]- regarding.
- he 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.
- 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 10 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.
- 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.
- 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)
