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2022 (1) TMI 151 - AAAR - GSTNature of activity - Job work - manufacturing or services - body building activity on the chassis provided by the principal - applicability of 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 - HELD THAT:- The job worker can use certain inputs required for fabrication work and the same will not amount to manufacture. Transfer of ownership to the appellant - HELD THAT:- As per Appellant, they are procuring some inputs like steel sheets, windows, glasses, wiring harness etc on payment of duty, which is further claimed as Input Tax Credit whereas the chassis of tippers, tankers and trucks etc are received by them, free of cost, under the delivery challans. Accordingly, the chassis delivered to the Appellant remains in their temporarily possession only for certain time to carry out the process of job work as per direction of the principal. The Appellant has received the chassis only as job worker and on free cost basis under the delivery Challan - the ownership of the chassis always remains with the Principal i.e. M/s TATA Motors. 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% - Circular No. 52/26/2018-GST dated 09.08.2018 is squarely applicable in the case of Appellant. Thus, 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.
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