GST HSN Classification for Truck Mounted Cranes Ruled by AAR
Haryana AAR ruled that mounting cranes on ready-made truck chassis creates special purpose motor vehicles under GST HSN code 8705.
- Ruling
- HAR/HAAR/R/2017-18/5, dated 10.04.2018
- Dated
- 10 Apr 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Action Construction Equipment asked how to classify truck-mounted cranes under GST.
- The company mounts heavy cranes onto ready-made trucks purchased from manufacturers.
- Haryana AAR ruled the resulting vehicle falls under HSN code 8705.
- The base chassis is a complete road vehicle, making it a crane lorry.
In short
A heavy equipment manufacturer bought standard road truck chassis and mounted cranes on them to create truck-mounted cranes. The company asked tax authorities whether these vehicles should be classified as lifting machinery under Goods and Services Tax (GST) HSN code 8426 or as special purpose motor vehicles under HSN code 8705. The correct HSN code determines how the item is reported on tax invoices.
What has changed
How it worked before
Businesses were uncertain whether adding a crane turned a road truck into factory machinery or kept it classified as a special road vehicle under GST.
What has changed
The Haryana Authority for Advance Ruling (AAR) ruled under order HAR/HAAR/R/2017-18/5 that mounting a crane on a commercial truck chassis creates a special purpose motor vehicle under HSN code 8705. Because the base chassis is designed for road transport, the finished product is considered a crane lorry rather than simple lifting equipment. Equipment integrators using road-ready truck chassis must classify these finished products under HSN 8705.
Who this affects
Automobile bodybuilders, crane integrators, and heavy equipment manufacturers who buy commercial truck chassis to build specialized road vehicles.
An example
ABC Engineering buys readymade truck chassis from commercial vehicle makers and fits heavy lifting cranes onto them for clients. The company wants to know which HSN code to list on its GST invoices. Based on ruling HAR/HAAR/R/2017-18/5, because the base vehicle is a standard road chassis, the completed unit is treated as a crane lorry under HSN 8705. ABC uses this clarification to consult its GST advisor before finalizing its billing setup.
What you should do
Review your product designs if you build specialized vehicles on road truck frames. Note that an advance ruling binds only the company that applied and its local tax authority. Do not change your GST classification without consulting a tax professional or filing your own advance ruling application.
If you do nothing
Assuming this ruling automatically protects your business can lead to tax disputes during a GST audit. If your local tax officer disagrees with your HSN classification, you may be assessed for unpaid tax, interest, and penalties. Using the wrong code can also create input tax credit issues for your commercial buyers.
The terms explained
- HSN code
- A standardized numerical code used under GST to categorize goods and identify their tax treatment.
- Advance ruling
- An official written clarification from tax authorities explaining how tax laws apply to a specific business activity.
- Chassis
- The base frame and mechanical components of a motor vehicle on which the body and equipment are installed.
- Special purpose motor vehicle
- A motor vehicle constructed or adapted for specific non-transport tasks, such as crane lorries or fire engines.
The ruling in detail
Authority for Advance Ruling
M/s Action Construction Equipment Limited
HAR/HAAR/R/2017-18/5, dated 10.04.2018 · Haryana
Questions before the authority
- Whether Truck Mounted Cranes (TMC) manufactured by mounting or fixing cranes on readymade trucks fall under Chapter Heading 8426 or Heading 8705?
Facts
The applicant purchases readymade trucks or lorries from manufacturers such as Ashok Leyland and TATA and mounts heavy-duty cranes onto them to produce Truck Mounted Cranes (TMC) used for lifting heavy loads. The applicant sought an advance ruling to clarify whether the resulting TMC vehicles should be classified as crane machinery under HSN 8426 or as special purpose motor vehicles under HSN 8705.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification of Truck Mounted Cranes (TMC) | Heading 8705 Applies where cranes are mounted on readymade truck/lorry chassis |
The Authority ruled that the Truck Mounted Cranes (TMC) manufactured by mounting or fixing cranes on readymade trucks/lorries are classifiable under **Heading 8705**. Since the underlying chassis are complete automobile vehicles designed for transport, mounting a crane onto them transforms them into special purpose motor vehicles (crane lorries) under Heading 8705.
Reasoning
The Authority examined HSN Explanatory Notes for Headings 8426, 8705, and 8709. Heading 8426 covers works trucks fitted with a crane designed for short-distance transport in factories or warehouses, whereas Heading 8705 covers special purpose motor vehicles including crane lorries. Relying on judicial precedents including the Supreme Court decision in LML Ltd. and the CESTAT ruling in Automotive Coaches & Components Ltd., the Authority held that when a crane is mounted on an essentially complete automobile truck chassis, the resultant item is a crane lorry classifiable under **Heading 8705**.
Provisions relied on
- Section 97(2)(a) of the CGST/HGST Act, 2017
- Section 98 of the CGST/HGST Act, 2017
- Section 103 of the CGST/HGST Act, 2017
- Chapter Heading 8426
- Chapter Heading 8705
- Chapter Heading 8709
For the practitioner
This ruling establishes that mounting lifting machinery onto standard commercial truck chassis results in a special purpose motor vehicle under **Heading 8705** rather than material handling equipment under Heading 8426. It helps automotive bodybuilders and heavy equipment integrators determine correct HSN classification when using pre-manufactured road trucks. It does not decide tax classification for integral mobile cranes built on custom non-transport chassis.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/haryana-ar_05_2017-18_dt.10.04.18_acel.pdf
Legibility of the scan, as read: high.
Prepared 17-10-2026.
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