Movement of Capital goods between distinct person not supply

In re CHEP India Private Limited (GST AAAR Maharashtra)

Movement of goods from one state to other in consequence to lease contract is supply of lease rental services

The AAAR, Maharashtra, in matter of M/s Chep India Private Limited [Order No. MAH/AAAR/DS-RM/02/2023-24 dated June 05, 2023] held that the transaction between two GSTINs of same person would be considered as lease transaction and accordingly taxable as supply of services in terms of Section 7 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

Facts:

M/s. Chep India Private Ltd.  (“the Appellant”) is engaged in the business of leasing of pallets, crates and containers (“Equipments”) and multiple GST registrations all over India including in the state of Maharashtra, Karnataka and Tamil Nadu.

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