GST on body building activity on the chasis provided by the principal.
Classification of service- In the instant case, the Adithya Automotive Applications Pvt. Ltd.
The applicant has sought advance ruling on following questions-
I. Whether the body building activity on the chasis provided by the principal would amount to manufacturing services attracting 18% of GST.
II. Whether clarification of CBIC vide para no. 12.3 of Circular No. 52/26/2018-GST dated 09.08.2018 clarifying 18% rate of GST in respect of building of body of buses would also apply in the case of applicant.
Held that- in the instant case, it is a supply of body of the vehicle and the activity of fitting/mounting of vehicle-body on chassis is an ancillary activity to the principal activity of supply of vehicle-body. Hence, in terms of the clarification issued by the CBEC vide circular No. 34/8/2018-GST, dated 1-3-2018, the impugned activity is a composite supply, with principal supply being supply of body of the vehicle.
GST on body building activity on the chasis provided by the principal.
Classification of service- In the instant case, the Adithya Automotive Applications Pvt. Ltd.
The applicant has sought advance ruling on following questions-
I. Whether the body building activity on the chasis provided by the principal would amount to manufacturing services attracting 18% of GST.
II. Whether clarification of CBIC vide para no. 12.3 of Circular No. 52/26/2018-GST dated 09.08.2018 clarifying 18% rate of GST in respect of building of body of buses would also apply in the case of applicant.
Held that- in the instant case, it is a supply of body of the vehicle and the activity of fitting/mounting of vehicle-body on chassis is an ancillary activity to the principal activity of supply of vehicle-body. Hence, in terms of the clarification issued by the CBEC vide circular No. 34/8/2018-GST, dated 1-3-2018, the impugned activity is a composite supply, with principal supply being supply of body of the vehicle.