Quick Summary
Central Board of Indirect taxes and Customs (CBIC) has offered clarity on the classification of mobile machines such as all-terrain cranes and truck-mounted cranes into motor vehicles and cranes. Experts say this would reduce litigation in courts, as motor vehicles and cranes attract different custo
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FAQ :
The CBIC's clarification aims to resolve differing opinions on classifying mobile machines like cranes for GST and customs duty, thereby reducing litigation.
Mobile cranes whose working machines are merely mounted on the chassis and not mechanically integrated will be treated as motor vehicles.
Motor vehicles attract a basic customs duty of 10 per cent, while cranes attract 7.5 per cent.
The GST rate for both types of mobile machines is 18 per cent, though some motor vehicle components can attract 28 per cent GST.
Criteria include whether the machine can move under load (motor vehicle) or is stationary (crane), and the location of control elements in the cab of the lifting machine.
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