Classification of service- The present appeal has been filed against the advance ruling order issued by the Authority for Advance Ruling, Uttar Pradesh.

As per Appellant, they are engaged in the body building and mounting of body on the chassis of different models of Tippers, Tankers, Trucks and Trailers. They receive chassis of these items from TATA Motors and other customers on the basis of returnable challan. They undertake body building as per contract / purchase order issued by M/s TATA Motors.

The Authority for Advance Ruling, 

ruled that:

(i) the body building activity on the chassis provided by the principal would not amount to manufacturing services attracting 18% of GST.

(ii) clarification of CBIC vide para no. 12.3 of Circular No. 52/26/2018-GST date 09.08.2018 clarifying 18% rate of GST in respect of building of body of buses would also not apply in the case of applicant.

As per Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017, as amended, it has been clarified that the Tax rate for “(ic) Services by way of job work in relation to bus body building” would be 18%.

The Circular No. 52/26/2018-GST dated 09.08.2018 is squarely applicable in the case of Appellant and accordingly we pass the following ruling.

Held that - the body building and mounting of body on the chassis of different models of Tippers, Tankers, Trucks and Trailers, on the chassis to be supplied by the Principal, on delivery challans, by collecting job work charges for such fabrication work is taxable @18%, in accordance with Circular No. 52/26/2018-GST dated 09.08.2018, subject to fulfillment of all the conditions prescribed in the Section 141 and 143 of the CGST Act, 2017 read with relevant Rules/Notifications.