The activity of bus body building undertaken on the chassis supplied by the customers to the applicant amounts to supply of service as per Schedule II clause 3 of CGST Act 2017. The service rendered is classified under SAC 998881 and rate will be 18%.
Classification of service— The applicant has sought Advance Ruling on the following question:-
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?
In the instant case, the bus body fabricated and mounted on the chassis supplied by the customer is delivered back to the customer charging a lump sum amount as job work charges. It is to be noted that ownership of the chassis remains with their customers and will not be transferred to the applicant at any point of time. The consideration is received only towards fabrication services besides own materials involved in the fabrication.
Held that—1. The activity of bus body building undertaken on the chassis supplied by the customers to the applicant amounts to supply of service as per Schedule II clause 3 of CGST Act 2017
2. The service rendered is classified under SAC 998881 and
3. The applicable rate will be CGST @ 9% and SGST @ 9% as per entry no.26 of Notification no. 11/2017-Central Tax (Rate) dt. 28.06.2017
The activity of bus body building undertaken on the chassis supplied by the customers to the applicant amounts to supply of service as per Schedule II clause 3 of CGST Act 2017. The service rendered is classified under SAC 998881 and rate will be 18%.
Classification of service— The applicant has sought Advance Ruling on the following question:-
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?
In the instant case, the bus body fabricated and mounted on the chassis supplied by the customer is delivered back to the customer charging a lump sum amount as job work charges. It is to be noted that ownership of the chassis remains with their customers and will not be transferred to the applicant at any point of time. The consideration is received only towards fabrication services besides own materials involved in the fabrication.
Held that—1. The activity of bus body building undertaken on the chassis supplied by the customers to the applicant amounts to supply of service as per Schedule II clause 3 of CGST Act 2017
2. The service rendered is classified under SAC 998881 and
3. The applicable rate will be CGST @ 9% and SGST @ 9% as per entry no.26 of Notification no. 11/2017-Central Tax (Rate) dt. 28.06.2017