TMI Blog2022 (4) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... T( R). As per the Scheme of Classification of services, it is found that subject supply merits to be classified at Heading 9988 Manufacturing services on physical inputs (goods) owned by others and precisely at Service code (Tariff) 998882 other transport equipment manufacturing services . - GUJ/GAAR/R/2022/23 - - - Dated:- 12-4-2022 - ATUL MEHTA AND ARUN RICHARD, MEMBER Present for the applicant : Shri Hemchand Chhajed, CA Brief facts: M/s. Vasant Fabricators Pvt. Ltd. (referred to as VFPL for the sake of brevity) submits that it is engaged in building bodies of various vehicles falling under Chapter 87 of the First Schedule to the Custom Tariff Act such as mounting of tankers, tippers etc. on chassis provided by the owner of such chassis, either registered or unregistered. 2. On receipt of such chassis, VFPL undertakes the following activities on such chassis: (i) First the chassis of the Principal, either registered or unregistered, is received at VFPL registered premises. Thereafter, they make the drawing for type of the job to be undertaken and ascertain the type and quantity of materials required for the job. Depending on the work to be carrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019 CT(Rate) and the same reads as under: Explanation - For the purposes of this entry, the term bus body building shall include building of body on chassis of any vehicle falling under chapter 87 in the First Schedule to the Customs Tariff Act, 1975. (ii) Job work has been defined at Section 2(68) of the CGST Act as under: Job work means any treatment or processing undertaken by a person on goods belonging to another registered person and the expression job worker shall be construed accordingly. (iii) A conjoint reading of the entry in the Notification and Section 2(68) of the CGST Act, 2017 indicates that any treatment or processing undertaken on the goods belonging to another person who is Registered would be covered under the definition of job-work and accordingly, the applicable rate would be the entry at (id) above. In short, in cases where we receive the chassis from a GST registered person, the activity would be in the nature of services covered under Sr. No. 26(ic) of Notification No. 11/2017 Central Tax (Rate) as amended vide Notification No. 20/2019 Central Tax (Rate) and the applicable rate would be 18% b) In cases where the chassis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmits that the activity undertaken by them is purely supply of services based on the following clarifications issued by the Board and the various Advance Rulings pronounced by the Authority of Advance Ruling pertaining to various states across India: a) Circular No. 52/26/2018-GST dated 09.08.2018 VFPL has submitted that in Para 12 of the said circular clarifies the activity of bus-body building which is identical to their activity in terms of Explanation to Sr. No. 26(ic) of Notification No. 11/2017 CT(Rate) which was inserted vide Notification No. 26/2019 CT(Rate). The text of the said circular reads as under: 12.1 Applicable GST rate for bus body building activity : Representations have been received seeking clarifications on GST rates on the activity of bus body building. The doubts have arisen on account of the fact that while GST applicable on job work services is 18%, the supply of motor vehicles attracts GST @ 28%. 12.2 Buses [motor vehicles for the transport of ten or more persons, including the driver] fall under headings 8702 and attract 28% GST. Further, chassis fitted with engines [8705] and whole bodies (including cabs) for buses [8707] also attract 28% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) Advance ruling in the case of M/s Commercial Vehicles Ltd. reported at 2020 (39) GSTL 378 (AAR-GST-MP) (iv) Advance ruling in the case of M/s Tube Investments of India Ltd. reported at 2020 (42) GSTL 256 (AAR-GST-TN) (v) Advance Ruling in the case of M/s Jeet Jeet Glass And Chemicals Pvt. Ltd. reported at 2021 (48) GSTL 85 (AAR-GST-Raj) (vi) Advance Ruling in the case of M/s Kondody Autocraft (India) Pvt. Ltd. reported at 2019 (23) GSTL 488 (AAR-GST) (vii) Advance Ruling in the case of M/s Rohan Coach Builders reported at 2019 (26) GSTL 525 (AAR-GST) (viii) Advance Ruling in the case of M/s Sanghi Brothers (Indore) Pvt. Ltd. reported at 2019 (27) GSTL 136 (AAR-GST) 6. Question on which Advance Ruling sought: (1) Whether the activity of fabricating and mounting Tankers, Tippers, etc. on the chassis provided by the owner of such chassis i.e. bus body building would be covered under the category of Supply of Services? (2) If yes, the applicable accounting code of such services as per the Scheme of Classification of Services and the applicable rate of GST thereon. Personal Hearing: 7. Personal hearing (virtual) granted on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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