The supply of chassis mounted with bus body, shall be treated as a supply of bus; classifiable under chapter heading 8702; taxable at the rate 28%.
Authority for Advance Ruling — Supply of Chassis and Bus body building Services – The applicant engaged in the business of trading of buses and chassis of bus. Also provides services in respect of fabrication/mounting of bus body on chassis to its customer. The applicant sought an advance ruling as to whether supply of chassis mounted with bus body, shall be treated as a supply of bus or separate supplies of chassis, taxable at the rate 28%; whether the supply of chassis and the provision of services in respect of activity of mounting/ fabrication under two separate contracts to the same customer should be treated as supply of bus or as separate supplies.
Held that:- The Hon’ble Authority ruled that the supply of chassis mounted with bus body, shall be treated as a supply of bus; classifiable under chapter heading 8702; taxable at the rate 28%. The supply of chassis and the provision of services in respect of activity of mounting/ fabrication under two separate contracts to the same customer should be treated as supply of chassis and composite i.e., supply of goods i.e., bus-bodies, being principal supply (HSN Code 8707); classifiable under chapter heading 8707; taxable at the rate 28%. The recovery of the bus body building charges incurred by the applicant on behalf of customer in capacity of an agent, should be covered in the ambit of Schedule I of the Act, 2017 and thus, leviable to GST taxable at the rate 28%.
The supply of chassis mounted with bus body, shall be treated as a supply of bus; classifiable under chapter heading 8702; taxable at the rate 28%.
Authority for Advance Ruling — Supply of Chassis and Bus body building Services – The applicant engaged in the business of trading of buses and chassis of bus. Also provides services in respect of fabrication/mounting of bus body on chassis to its customer. The applicant sought an advance ruling as to whether supply of chassis mounted with bus body, shall be treated as a supply of bus or separate supplies of chassis, taxable at the rate 28%; whether the supply of chassis and the provision of services in respect of activity of mounting/ fabrication under two separate contracts to the same customer should be treated as supply of bus or as separate supplies.
Held that:- The Hon’ble Authority ruled that the supply of chassis mounted with bus body, shall be treated as a supply of bus; classifiable under chapter heading 8702; taxable at the rate 28%. The supply of chassis and the provision of services in respect of activity of mounting/ fabrication under two separate contracts to the same customer should be treated as supply of chassis and composite i.e., supply of goods i.e., bus-bodies, being principal supply (HSN Code 8707); classifiable under chapter heading 8707; taxable at the rate 28%. The recovery of the bus body building charges incurred by the applicant on behalf of customer in capacity of an agent, should be covered in the ambit of Schedule I of the Act, 2017 and thus, leviable to GST taxable at the rate 28%.