Eway bill compliance in case of crane renting business

[Nikhil Kamble]

 

> Our company is engaged in the business of hiring/leasing cranes and is registered under GST in Maharashtra.

>

> Cranes are frequently moved across various states for leasing/rental purposes. In many instances, a crane may be stationed temporarily in a state where the company does not hold a GST registration, either:

>

> 1. While awaiting deployment to a customer, or

> 2. Between completion of one rental contract and commencement of another.

>

> In such cases, we seek guidance on the following:

>

> * For generating an e-Way Bill for interstate movement of cranes, how should the fields **'Bill From,' 'Bill To,' 'Dispatch From,' and 'Dispatch To'** be populated when the crane is being moved for leasing purposes and not pursuant to a sale transaction?

> * If a crane is temporarily parked or stationed in another state without any fixed office, warehouse, or place of business, is the company required to obtain GST registration in that state or declare the location as an **Additional Place of Business (APOB)**?

> * Would the GST implications differ if the crane remains in a state for an extended period before being leased to a customer?

> * Are there any specific GST/e-Way Bill provisions, circulars, or advance rulings governing the movement of capital goods such as cranes for hiring/leasing operations?

>

> Any guidance or practical experience on this issue would be gr

eatly appreciated.

[Sadanand Bulbule]

Use a delivery challan with " own use" in e-way bill ( same GSTIN as consignor/consignee) , and no separate GST registration is needed in another State unless you set up a fixed place of business there--even if the crane stays temporarily.

[Shilpi Jain]

When the crane is temporarily stationed, is it at a warehouse rented by the company?

Even if so, since no supply is made from that place alone, registration is not required

[Shilpi Jain]

In the e-way bill u need to mention the actual addresses for bill from bill to ship from and ship to.

Ensure that ship to has the GSTIN or mentioned as unregistered as per latest advisory on e-way bill.

[YAGAY andSUN]

The interstate movement of cranes by a leasing/hiring company, without transfer of ownership, is generally not treated as a supply merely because the crane is moved from one State to another. CBIC Circular No. 1/1/2017-IGST dated 07.07.2017 clarifies that interstate movement of goods such as cranes, rigs, tools, spares and other goods on wheels between distinct places of the same legal entity for providing services does not constitute a supply, provided the movement is not for further supply of such goods.

Accordingly, when a crane is moved from Maharashtra to another State for deployment, redeployment, or temporary parking pending a rental contract, the movement may be covered under a Delivery Challan issued under Rule 55 of the CGST Rules. An e-Way Bill may nevertheless be required under Rule 138, since goods may move for reasons other than supply.

For such movements, the following approach may be adopted:

Bill From: Maharashtra GSTIN of the company.
Dispatch From: Actual location from where the crane is moved.
Bill To: Self (same Maharashtra GSTIN), where the movement is only for positioning, storage or redeployment.
Ship To: Actual destination where the crane is being stationed.

Merely parking or stationing a crane in another State does not, by itself, require GST registration in that State. Registration implications generally arise only where the company has a "place of business" or "fixed establishment" such as a depot, yard, workshop, branch office or similar operational base. A location outside Maharashtra cannot be declared as an Additional Place of Business under the Maharashtra GST registration; if registration is otherwise required, a separate registration in that State would need to be obtained.

The GST law does not prescribe any specific period beyond which the continued presence of a crane in a State triggers registration. However, where cranes are regularly stationed in a dedicated yard supported by personnel, maintenance facilities or other infrastructure, the possibility of the location being regarded as a place of business increases and the registration position should be examined separately.

The above position is based on Section 7 of the CGST Act, Schedule I, Rule 55, Rule 138 and CBIC Circular No. 1/1/2017-IGST dated 07.07.2017

AI Summary

Interstate crane movement for leasing may use a delivery challan and e-way bill without separate state registration. Interstate movement of cranes by a leasing or hiring business, without transfer of ownership, is generally not treated as a supply when the cranes are moved for deployment, redeployment, temporary parking, or similar service-related positioning. Such movement may be covered by a delivery challan under Rule 55 and may still require an e-way bill under Rule 138. For e-way bill purposes, the Maharashtra GSTIN may be used, with the actual movement location shown as dispatch and the destination shown as ship-to, while self may be shown as bill-to.