Supply and Installation of Electric Overhead Travelling Crane - a works contract or Supply of goods?

[Shyam Agarwal]

Query is regarding Combined contract for Supply and Installation of Electric Overhead Travelling Crane. Whether the same should be considered as a works contract under GST or supply of Goods that is Crane.

As per recent Advance Rulling of Maharashtra - In case of M/s Mukund Ltd-GST AAR Maharashtra = 2018 (10) TMI 1243 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA , it is held that EOT Grab Cranes r liable for GST@5% as these are used for waste to energy product as a Renewable Energy. In this it was also discussed that Electric Overhead Travelling Grab Crane attached to the fixed support classifiable under Tariff heading 84261100.Is it mean that AAR held EOT Cranes as a goods? But after Installation the same should be considered as a works contract. Please share your analysis on the same.

Whether Combined contract for Supply and Installation of Electric Overhead Travelling Crane is to be considered as a works contract under or supply of goods under chapter heading 84261100?

AI Summary

Works contract classification under GST challenged for EOT crane installations; outcome depends on immovability and scope of supply.
Classification of supply and installation of an EOT crane under GST turns on whether the crane, after erection, is treated as movable property or as immovable property under the works contract definition. If the contractor supplies and installs both gantry beams and crane or effects site specific assembly akin to erection of immovable property, the transaction is likely characterised as a works contract; if the crane is a prefabricated, dismantlable unit mounted on client provided supports, it is likely treated as supply of goods. Contractual allocation and factual permanence are determinative.