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GST on the activity of building the body and mounting the same on the chassis of the bus, owned by the supplier (Principal/sender)

Classification of Supply — An applicant is providing service of body building on motor vehicles by fabrication and charged fabrication charges on lump sum basis. The applicant sought Advance Ruling on the following question: A. Whether the treatment or process of body building by fabrication and other processes carried out on chasis of motor vehicle owned by others is supply of services ? B. If the above stated activity of body building is considered as supply of service in terms of description given at paragraph 3 of Schedule II of the CGST Act, 2017 what will be the rate of GST applicable on such service? C What will be the service Code (tariff) for above stated activity of body building carried out on another person’s chasis of motor vehicle? D. What would be the classification and applicable rate of tax for the activity of accident repairing job on the vehicle supplied by the owner for such job if a lump sum price is charged that includes cost of material and labour? E If the above stated activity of body building is not considered as supply of services, what will be the nature of this supply, tariff code and rate of GST for such supply? Held that— A. In case the applicant received the chasis from the principal on Job work challan/ delivery challan and build body on it and thereafter clear to the principal by raising the Invoice of Job work charges, it would amount to supply of service. In cases applicant owned the chasis and built the body and thereafter supply as complete body built motor vehicle to the customer by raising invoice of value of motor vehicle, it would amount to supply of goods. B. We hold that in case of supply of service, rate of GST will be 18% C. The activity of body building carried out on another person’s chasis of motor vehicle is classifiable under SAC 9988. In case of supply of complete built-up motor vehicle on owns chasis is classifiable under CTH 87 (depends upon type of vehicle supplied). D. The classification and applicable rate of tax for the activity of accident repairing job on the vehicle supplied by the owner for such job if a lump sum price is charged that includes cost of material and labour is classifiable under SAC 9987 and GST is leviable @ 18 % E. The nature of supply would be goods i.e. motor vehicle, classification HSN would be 87 (depends upon type of vehicle supplied) and GST rate would be 28 % — AB N Dhruv Autocraft (India) Pvt. Ltd., In Re… [2020] 26 TAXLOK.COM 099 (AAR-Gujarat)