The Central Government has clarified that the inter-state movement of rigs, tools and spares, and all goods on wheels is exempt from payment of Integrated Goods and Services Tax (IGST).
Earlier, IGST exemption was granted 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.
The circular issued today said that the last meeting of the GST Council has discussed the issue pertaining to inter-state movement of rigs, tools and spares, and all goods on wheels [like cranes] and it was decided that the above circular 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,” the circular said.
