TMI Blog2021 (7) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... itle in the chassis is transferred to the applicant. Therefore, 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 - rate of GST applicable - HELD THAT:- As per the Scheme of Classification of Services notified as Annexure to Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 the Heading [Service Accounting Code] - 9988 pertains to manufacturing services on physical inputs (goods) owned by others - the value of the services in this Heading is based on the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bending of raw materials; (d) welding of all cut and bend parts; (e) assembly of all fabricated parts and statutory parts; and (f) final product on chassis and delivery of the tanker with license. 2. At the outset, the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under. 3. The applicant requested for ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egard CBIC has issued clarification vide Circular No.52/26/2018-GST dated 09.08.2018. In the circular it is categorically clarified that fabrication of body on chassis provided by the principal (not on account of body builder), would merit classification as service and 18% GST as applicable will be charged. Further for carrying out the activity of building and mounting of the body, the customer provides or delivers the chassis and ownership of such chassis is not transferred to them in any case. They never purchase such chassis on their own account. They procure various inputs and services directly which are used for carrying out body building on the chassis received and once the body is built and mounted on the chassis, the fully built veh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. KER/39/2019 dated 02.03.2019 given by Kerala Authority to M/s. Kondody Autocraft (India) Pvt. Ltd, Kottayam and also Advance Ruling Advance Ruling No. GUJ/GAAR/R/30/2020 dated 02.07.2020 given by Gujarat Authority to M/s. ABN Dhruv Autocraft (India) Pvt. Ltd. 5. Contentions of the Jurisdictional Officer: 5.1. The jurisdictional officer submitted that the applicant is dealing in Trailers and semi Trailers, other vehicles falling under HSN - 87161000, Paint and Varnishes falling under HSN-32081010, Glass Mirrors, Rear-view mirrors for vehicles falling under HSN-70091010 and stainless steel in Ingots or other primary forms falling under HSN-72181000. They have filed returns collecting and paying GST at the rate of 28% and 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elonging to the customer. The ownership of the chassis remains with the customer and at no stage of the process of fabrication of the body, the title in the chassis is transferred to the applicant. Therefore, 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. 7.3. Having come to the conclusion that the activity is a supply of services, we proceed to determine the classification of the activity and the rate of GST applicable. As per the Scheme of Classification of Services notified as Annexure to Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Rate) dated 28.06.2017. In view of the observations stated above, the following rulings are issued; RULING 1. Whether the activity of tanker body building on job work basis, on the chassis supplied by the customer, is supply of goods or supply of service? The activity of tanker body building on the chassis supplied by the customer is a supply of service. 2. If it is supply of goods, what is the applicable rate of GST? Not relevant in view of the answer to Q.No.1 above. 3. If it is supply of services, what is the applicable rate of GST? The activity is liable to GST at the rate of 18% [9% CGST + 9% SGST] as per entry at SI No. 26 (iv) - 9988 - Manufacturing services on physical inputs (goods) owned by other ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
