GST on movement of goods from HO to branches in other states for further supply of goods on hire

In re Sanghvi Movers Limited (GST AAR Maharashtra)

Question 1. Based on the facts and business model adopted by Sanghvi Movers Limited (“SML” or “Applicant” or “the Company”,) under the GST regime as discussed below in detail, whether movement of tyre mounted cranes or crawler cranes from one GST registered office of SML to another registered office of SML for further supply on hire charges to customers would be treated as “taxable supply” under GST law or whether GST would not be leviable on the said movement as per the clarification issued by the CBEC vide Circular No. 21/21/2017-CGST read with Circular No. 1/1 /2017-IGST?

Answer: – Answered in Affirmative. Further circular No. 21/21/2017-IGST which exempts from tax interstate movement of rigs, tools, spares, and all goods on wheels [ like cranes ] where interstate movement of such goods is not for further supply of same goods is not applicable to the facts of present transaction as in the present case interstate movement of goods from SML HO in Maharashtra to SML branches in other states is for further supply of goods on hire.

Question.2. In the present situation and under the given facts, if GST is payable on the aforesaid transaction, whether the recipient office of SML duly registered under GST receiving such cranes for further supply on hire charges would be eligible to avail input tax credit of GST charged?

Answer: – Question is not answered by this authority as the applicant is not the proper person to raise this question.

Please become a Premium member. If you are already a Premium member, login here to access the full content.