2023 (1) TMI 975 - AAR - GST
Classification of supply - supply of goods or supply of services - activity of Bus Body Building on the chassis supplied by the customer on job work basis - applicable rate of GST and its SAC/HSN code - HELD THAT:- In the instant case, it is observed that the bus body is fabricated and mounted by the Applicant on the chassis owned and supplied by the customer. After completing the work, it is delivered back to the customer, charging a lump sum amount as Job Work Charges. The ownership of the chassis remains with their customers and will not be transferred to the Applicant at any point of time. The consideration is received only towards fabrication services besides some materials involved in the course of fabrication.
In the case of IN RE: M/S. TVL ANAMALLAIS ENGINEERING (P) LTD. [2021 (8) TMI 732 - AUTHORITY FOR ADVANCE RULING, TAMILNADU], it was held that the activity of Bus body building undertaken on the chassis supplied by the customers amounts to supply of service as per Schedule II clause 3 of CGST Act 2017. The service rendered was classified under SAC 998881 and the applicable rate will be CGST @ 9% and SGST @ 9% as per entry no.26 of Notification No.11/2017-Central Tax (Rate) dt.28.06.2017(as amended) and Sl.No,26 of Notification No.11(2)/ CTR/532(d- 14)/2017 vide G.O.(Ms)No.72 dated 29.06.2017 (as amended) respectively. - The facts and circumstances of the instant case are similar and there are no reason to deviate from the decision taken in the order.
The Bus body building on the chassis supplied by the customer is a service under SAC 998881, Motor Vehicle and trailer manufacturing services and 18% GST as applicable will be charged accordingly - it is evident that the activity undertaken by the Applicant for bus body building on the chassis supplied by the customer is to be classified as job work. As per Schedule II (3) of the CGST Act 2017, the said activity bus body building on the chassis belonging to the customer by the applicant is supply of services.