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
Date of Circular: 22nd November 2017
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 25(4): Distinct persons under single PAN across States
• IGST Act, 2017: Provisions for inter-State movement
• Related Circular:
  • Circular No. 1/1/2017-IGST dated 7.7.2017

Summary of Circular:

This circular provides clarification on inter-State movement of rigs, tools, spares, and movable goods like cranes, particularly between distinct persons under the same PAN but different GST registrations across States.

1. Treatment of Inter-State Movement as Non-Supply:
   • Based on GST Council’s recommendation (10th Nov 2017), it is clarified that inter-State movement of:
     • Rigs, tools, spares, and
     • Goods on wheels (e.g., cranes),
       shall be treated as “neither a supply of goods nor a supply of services” under GST, provided such goods are not moved for further supply.
2. Extension of Earlier Clarification:
   • The principle laid down in Circular 1/1/2017-IGST for conveyances (like vehicles) applies mutatis mutandis to rigs and similar movable goods.
3. GST on Repairs and Maintenance:
   • Although the inter-State movement is exempt, repairs and maintenance services on such goods are taxable under the appropriate GST (CGST/SGST/IGST), based on place of supply.

Source: Circular No.: 21/21/2017-GST