Classification of service- In the instant case, the applicant 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.

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.

This authority finds 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’.

Held that- Supply of Bus body building on the chassis owned by customer is supply of Service. GST rate is 18% on Bus body building on chassis owned by GST registered customer under Sr. no. 26(ic) of Notification No. 11/2017 (CTR).

And GST rate is also 18% on Bus body building on chassis owned by unregistered customer under Sr. no. 26(iv) of Notification No. 11/2017 (CTR).