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2018 (10) TMI 1044 - AAR - GSTClassification of supply - supply of goods or not? - job-work or not? - As per the application it is mentioned that, the chassis ownership is not transferred and hence it should be classified under job work. Whether the activity of building and mounting of the body on the chassis by the Applicant will result in supply of goods under HSN 8707 or supply of services under HSN 9988? Held that:- GST law does not distinguish between raw material, finished goods and semi-finished goods. It talks about input and Capital goods. Even, semi-finished goods or intermediates are goods and in turn ‘Input’ by the principal or the job worker - the argument of the applicant that they use their own material, hence, they should not be treated as job worker is not tenable under the provision of law. Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work) - fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and 18% GST as applicable will be charged accordingly. Ruling:- The Activity of building and mounting of the body on the chassis provided by the principal under FOC challan will result in supply of services under HSN 9988 and hence, should be taxed @ 18% GST.
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