Taxable Supply of Cranes Between GST Registered Offices: Rules and Exemptions

The movement of cranes between GST registered offices of the same entity for further supply on hire charges is considered a taxable supply under GST law. Input tax credit eligibility for the recipient office was not addressed. Movement of cranes solely for upkeepment and maintenance, without further supply, is not taxable, but GST applies to actual repairs and maintenance services. GST is applicable on the movement of both tyre-mounted and crawler cranes. The value for GST purposes is determined as 95% of the value charged by SML branches to their customers, in line with CGST Rules.

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Issues Involved:
1. Taxability of movement of cranes between GST registered offices of the same entity for further supply on hire charges.
2. Eligibility of input tax credit for recipient office receiving cranes for further supply on hire charges.
3. Taxability of movement of cranes for upkeepment and maintenance purposes.
4. Applicability of GST on the movement of both types of cranes (tyre-mounted and crawler cranes).
5. Determination of value under Section 15 of the CGST Act for discharging GST on the movement of cranes.

Detailed Analysis:

Issue 1: Taxability of movement of cranes between GST registered offices for further supply on hire charges
The movement of tyre-mounted cranes or crawler cranes from one GST registered office of SML to another for further supply on hire charges is treated as a "taxable supply" under GST law. This is based on Section 25(4) of the CGST Act, which treats each registration as a distinct person, and Schedule I, which considers supplies between distinct persons as taxable even without consideration. The Circular No. 21/21/2017-CGST, which exempts certain inter-State movements, does not apply here since the movement is for further supply on hire charges.

Issue 2: Eligibility of input tax credit for recipient office
The question of whether the recipient office of SML receiving cranes for further supply on hire charges can avail input tax credit is not answered by the authority. The applicant is not considered the proper person to raise this question, as it pertains to the recipient office situated in another state.

Issue 3: Taxability of movement of cranes for upkeepment and maintenance purposes
When cranes are moved from one GST registered office of SML to another solely for upkeepment and maintenance, without further supply to unrelated customers, such movement is not treated as a "taxable supply" under GST law. This is in line with Circular No. 21/21/2017-CGST, which states that such movements are neither a supply of goods nor a supply of services. However, GST is applicable on the actual repairs and maintenance services performed.

Issue 4: Applicability of GST on movement of both types of cranes
GST is payable on the movement of both types of cranes (tyre-mounted and crawler cranes) from one GST registered office to another for further supply on hire charges. Both types of cranes are covered under the expression "all goods on wheels [like cranes]" as per Circular No. 21/21/2017-GST.

Issue 5: Determination of value under Section 15 of the CGST Act
For the purpose of discharging GST on the movement of cranes, the value under Section 15 of the CGST Act should be the transaction value. In this case, SML Maharashtra charges approximately 95% of the value charged by SML branches to their customers. This valuation method is consistent with the first proviso to Rule 28 of the CGST Rules, which allows for 90% of the price charged by the recipient to the customer to be considered as the value of supply. The value declared in the invoice is deemed to be the open market value if the recipient branch office is eligible for full input tax credit.

Conclusion:
1. Movement of cranes for further supply on hire charges is a taxable supply.
2. The question of input tax credit eligibility for the recipient office is not addressed.
3. Movement of cranes for upkeepment and maintenance is not taxable, but repairs and maintenance services are.
4. GST applies to the movement of both tyre-mounted and crawler cranes.
5. The value for GST purposes is 95% of the value charged by SML branches to their customers, consistent with Rule 28 of the CGST Rules.

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