(GSTmitra-Series-23) πŸ“’ Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance.

β›³ A person making inter-State supply of goods or services or both is compulsorily required to be registered. Further as per Section 25(4) of the CGST Act, 2017 a person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.

β›³ Schedule I to the said Act specifies situations where activities are to be treated as supply even if made without consideration which also includes supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business.

β›³ In this regard, Central Government vide Circular No. 1/1/2017-IGST dt. 07-07-2017 has clarified that inter-state movement of goods like movement of various modes of conveyance, between distinct persons as specified in section 25(4) of CGST Act, 2017, not involving further supply of such conveyance, including:
Trains, Buses, Trucks, Tankers, Trailers, Vessels, Containers, Aircrafts,

β›³ (a) carrying goods or passengers or both; or (b) for repairs and maintenance, [except in cases where such movement is for further supply of the same conveyance] may not be treated as supply and consequently IGST will not be payable on such supply. However, applicable CGST/SGST/IGST will be leviable on repairs and maintenance done for such conveyance.

[Circular No. 1/1/2017-IGST dt. 07-07-2017]

 

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
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