Home Case Index All Cases GST GST + AAR GST - 2020 (1) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 791 - AAR - GSTClassification of activity - bus body building activity on the chassis provided by the principal as service - Circular No. 52/26/2018-GST dated 09.08.2018 - whether the classification bus body building activity on the chassis provided by the principal as service be extended to their activity of body building of tippers, trailers etc., as per Para No. 12.1, 12.2(b) and 12.3 of Circular No. 52/26/2018-GST dated 09.08.2018, as their activity also is akin to the one referred to in the said Circular. HELD THAT:- The applicant, in the instant case, is also involved in the same activity of body building but not on the chassis of bus. They fabricate the body on the chassis provided by the principal for Tippers, Trailers etc. - It is an admitted fact that the applicant, at present, is charging GST @ 28%, on treating their supply as that of goods, though the invoice is raised for “fabrication of body building on (the vehicle)” and the actual activity of supply is fabrication of body. Therefore the activity of the applicant is akin to that of the one mentioned in the Circular. The activity of the applicant qualifies to be classified as “Service”, subject to fulfillment of conditions enumerated at para 5.4 and also the vehicle on whose chassis the body is built must fall under Chapter 87. Classification of services - applicant contends that their services are covered under Service Code 998881 titled as “Motor vehicle and trailer manufacturing services - HELD THAT:- As per the said explanatory notes the service code 998881 includes motor vehicle manufacturing services, trailers and semitrailer manufacturing services and motor vehicle parts and accessories manufacturing services. The applicant is involved in manufacturing / fabrication of trailers etc. and hence their activity merits classification under Service Code 998881. Rate of tax on the services - HELD THAT:- The impugned services of the applicant are covered under heading 9988 as manufacturing services on physical inputs (goods) owned by others in terms of SI.No.26(ii) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 initially and subsequently under SI.No.26(iii) / (iv) respectively, consequent to amendment of the said entry No.26(iv) of the aforesaid Notification. However, the services by way of Job work in relation to bus body building have been carved out of the earlier entry i.e. SL.No.26(iv) of Notification supra and a separate entry under SI.No.26 (i) (ic) has been incorporated consequent to amendment of the said notification vide Notification No.20/2019-Central Tax (Rate) dated 30.09.2019. It is clearly evident that the applicant inadvertently claimed that their services are covered under entry of the Notification No.11/2017-CT (R) which attract 12% GST (6% CGST & 6% SGST), whereas actually they are covered under of the said Notification and attract 18% GST (9% CGST & 9% SGST).
|