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2023 (7) TMI 522 - AAR - GSTClassification of supply - rate of GST - Supply of service or not - treatment or process of bodybuilding by fabrication and other processes carried out on chassis of motor vehicles owned by others - activity of bodybuilding is considered as a supply of service or not and service code - rate of tax on activity of an accident repairing job on the vehicle supplied by the owner for such job if a lump sum price is charged that includes the cost of material and labour. HELD THAT:- As per Para 3 of Schedule II of the CGST Act, 2017 which lists out the activities or transactions to be treated as supply of goods or supply of Services; any treatment or process which is applied to another person's goods is a supply of service. In the instant case, the applicant is building the body of commercial vehicles for carrying goods on the chassis supplied by the customer as per the specifications of the customer. The applicant is collecting the charges for the activity which include the cost of inputs/material used by the applicants and the labour charges for the fabrication of the body. Thus, it is evident that the applicant is fabricating the body on the chassis belonging to the customer - the applicant is fabricating the body on the chassis belonging to another person and hence the activity is squarely covered under Para 3 of Schedule II of the CGST Act, 2017 as a treatment or process (which is applied to another person's goods and accordingly is a supply of services. Classification of the activity and the rate of GST applicable - HELD THAT:- The value of the services in this heading is based on the service fee paid, not the value of the goods manufactured. SAC-99888 under Heading 9988 pertains to Transport equipment manufacturing services and Sub-Heading 998881 pertains to the Motor vehicle and trailer manufacturing services. Therefore, the activity of the applicant as discussed above is appropriately classifiable Under Service Accounting Code 998881. Classification and applicable rate of tax for the activity of accident repairing job on a lump sum price basis including the cost of material and labour - HELD THAT:- As per Heading 998714, the repair and maintenance services may be paid by the owner of the goods being repaired or by a warranty and may include labour, pails, and supplies used in providing repair or maintenance services - This Heading Covers collision repair, accident repair, etc. Therefore, the activity of the applicant as discussed above is appropriately classifiable under Service Accounting Code 998714. Accordingly, the activity is liable to GST at the rate of 18% as per entry at SI. No. 25 (ii)- 9987- “Maintenance, repair and installation (except construction) services, other than (i),(ia) and (ib) above and serial number 38 below” of Notification No 11/2017 Central Tax (Rate) dated 28/06/ 2017.
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