Clarification on Inter-State Movement of Rigs, Tools, and Spares
<p><span>The Ministry of Finance, Government of India, issued Circular No. 21/21/2017-GST on November 22, 2017, providing essential clarifications regarding the inter-state movement of rigs, tools, spares, and all goods on wheels. This circular addresses concerns about IGST exemptions and provides critical guidance for the industry.</span></p><h4>Key Highlights:</h4><ol start="1"><li><span><strong>IGST Exemption</strong>: The circular clarifies that the inter-state movement of rigs, tools, spares, and all goods on wheels [like cranes], when moved between distinct persons as specified in section 25(4) of the CGST Act, 2017, is not treated as a supply of goods or services and therefore is not subject to IGST.</span></li><li><span><strong>GST Council Recommendation</strong>: The GST Council, in its meeting held on November 10, 2017, recommended that the IGST exemption should apply mutatis mutandis to the inter-state movement of the mentioned goods, except when the movement is for further supply of the same goods.</span></li><li><span><strong>Repairs and Maintenance</strong>: Applicable CGST/SGST/IGST is leviable on repairs and maintenance done for such goods, as reiterated in the circular.</span></li><li><span><strong>Implementation Guidance</strong>: The circular emphasizes that any difficulties in implementation should be brought to the notice of the Board for resolution.</span></li></ol><p><span>This circular is pivotal in resolving ambiguities related to the taxability of inter-state movements of rigs, tools, and spares, ensuring a consistent approach across the country.</span> <a href="https://cms.plasament.com/storage/circularno-21-cgst.pdf">circularno-21-cgst</a><br> </p>