GST on movement of Cranes -reg

[N Balachandran]

Can u please clarify the GST applicability on Movement of 500 ton capacity of Cranes to Site located in the various states?

1. Will it Attract GST for movement from one state to another state?

2. The crane will be used for one year or two years and subsequently will be moved to other sites located in other states.

N.Balachandran

[KASTURI SETHI]

Categories of services under GST are still to be finalized. Wait for enactment. Now it is under the erstwhile category 'Right to Use of Tangible Goods'

[Ganeshan Kalyani]

The concept of manufacturing or service will loose its identity under GST as the applicability of tax is on supply. If you are a supplier of truck to customer then it might come under GST as their would be supply.

However as opined by Sri Kasturi Sir, we will have to wait for the final version of the draft gst law. Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

Even though four bills are introduced in the Lok Sabha till rules in this regard are not made. As told by experts we have to wait till such time.

AI Summary

GST applicability on inter state movement of cranes depends on supply characterisation and final GST rules. GST applicability for moving heavy cranes between states depends on whether the activity is a taxable supply characterised as hire, lease, or a 'right to use' of tangible goods under the GST framework. Current commentary treats such transactions under the erstwhile right to use of tangible goods, but final tax treatment awaits the enacted GST law and rules, with incidence hinging on supply characterisation and supplier contractual arrangements.