This circular provides clarification on the GST implications of inter-State movement of rigs, tools, spares and goods on wheels such as cranes.

It clarifies that inter-State movement of such goods between distinct persons (as defined under the CGST Act), when undertaken for purposes such as use, repairs or maintenance, and not for further supply of the same goods, shall be treated as neither a supply of goods nor a supply of services. Consequently, IGST is not leviable on such movements. This clarification extends the principles laid down earlier for conveyances used for carrying goods or passengers to rigs, tools, spares and similar movable equipment.

However, the circular reiterates that GST is applicable on repairs and maintenance services carried out on such goods, and the appropriate tax (CGST, SGST or IGST, as applicable) shall be payable on such services.

The clarification aims to remove ambiguity and ensure uniform treatment of inter-State movement of movable equipment and goods on wheels under GST, provided such movement is not for the purpose of further supply.