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TMI Blog2023 (1) TMI 975X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab-initio in accordance with Section 104 of the Act. 5. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s Royal Coach Builders, No.136, Dindigul Road, Thanthonimalai, Karur-639005. (hereinafter called as the 'Applicant') is registered under the GST Acts with GSTIN 33AAEPV2861Q1Z3. The Applicant has sought Advance Ruling on the following questions: 1. Whether the activity of Bus Body Building on the chassis supplied by the customer on job work basis is a supply of service or supply of goods? 2. If it is supply of Service, what is the applicable rate of GST and its SAC code? 3. If it is supply of goods, what is the applicable rate of GST and its HSN? The Applicant ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation of Goa Limited, Goa Authority for Advance Ruling vide order no GOA/GAAR/10f 2017-18/2018-19/1929 dated 21.08.2018, it was held that it is supply of service under SAC 9988 and will attract 18% GST. * In the case of M/s Kondody Autocraft (India) Pvt. Ltd. AAR, vide Order No. KER/39/2019 dated 02.03.2019 held that fabrication of body on the chassis supplied by the customer is a service covered under SAC Code 9988- Manufacturing services on physical inputs (goods) owned by others and thereby attract 18% GST. 3.0 Personal hearing was held in digital platform on 17.08.2022 wherein Shri. M. Saravanan, (Authorised Representative - AR) appeared for the Applicant and reiterated the submissions made in the application. On being queried about the reason for filling an application despite the CBIC Circular issued in 2018, clarifying that bus body built on the chassis supplied by customer, is a service attracting 18% GST, the Authorised representative stated that there is doubt in the market. To the query whether the customer who supplied chassis are registered under GST or unregistered for which the Authorised representative stated that the customers are individuals / passenger b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the activity of Bus Body Building on the chassis supplied by the customer on job work basis is a supply of service or supply of goods? 2. If it is supply of Service, what is the applicable rate of GST and its SAC code? 3. If it is supply of goods, what is the applicable rate of GST and its HSN? As the question is to determine the nature of supply, which is within the ambit of the authority under section 97 (2) (g) of the CGST Act, the same is taken up for decision. 6.0 The Applicant has stated that they undertake fabrication of bus body over the chassis owned and supplied by the customer. This is evident on perusal of the copy of purchase invoice of chassis in the name of their customer (M/s Venkateswara Travels document no. MV 15524220000137 dated 05.05.2022) which was submitted by the Applicant. As per the process detailed by the Applicant, once Applicant receives enquiry from the customer, they offer the quotation containing specifications, payment terms, Time Schedule and Validity. If agreed upon, the Applicant undertakes fabrication of bus body over the chassis owned and supplied by the customer. 6.1 The Applicant contends that the activity qualifies as job work and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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% GST. In this context, it is mentioned that the services of bus body fabrication on job work basis attracts 18% GST on such service. Thus, fabrication of buses may involve the following two situations: a) Bus body builder builds a bus, working on the chassis owned by him and supplies the built-up bus to the customer, and charges the customer for the value of the bus. b) Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work). 12.3 In the above context, it is hereby clarified that in case as mentioned at Para 12.2 (a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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