In re Automobile Corporation of Goa Ltd (GST AAR Goa)
Whether the activity of building and mounting of the body on the chassis by the Applicant will result in supply of goods under HSN 8707 or supply of services under HSN 9988.
The Activity of building and mounting of the body on the chassis provided by the principal under FOC challan will result in supply of services under HSN 9988 and hence, should be taxed @ 18% GST
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GOA
The present application has been filed under section 97 of the Goa Good and Services Tax Act, 2017 and the Central Goods and Services Tax, Act 2017 (hereinafter referred to as the SGST Act and CGST Act) by Automobile Corporation of Goa Limited, seeking an Advance Ruling in respect of the following question: “Whether the activity of building and mounting of the body on the chassis by the Applicant will result in supply of goods under HSN 8707 or supply of services under HSN 9988.”
THE FACT OF CASE: – The Applicant M/s ACGL is receiving chassis of the bus from OEMs on FOC Basis under the cover of delivery challan. They procure various inputs and services directly which are used for carrying out the body building on the chassis received. Once the Bus body is built and mounted on th chassis by the Applicant, the fully built vehicles is sent back to the OEMs/customers on payment of GST as per law which they consider @ 28%. The GST is paid on the material and activity carried out by the applicant (cost of the chassis is not included). The consideration received by the Applicant is towards the manufacturing of the bus bodies using its own procured material and mounting of the body on the chassis supplied under FOC challan by the customers.
The question that arise for consideration in the present application is whether the activity of building and mounting of the body on the chassis by the applicant will result in supply of goods under HSN 8707 or supply of services under HSN 9988? To examine the issue, the applicant had referred provision of section 2(68) and Schedule II of the of the CGST and SGST Act.
As per section 2(68) of the CGST and SGST Act, the term job work means “any treatment or process undertaken by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly.”
As per para 3 of the Schedule II of the CGST Act, which specifies certain activities to be treated as supply of goods or supply of services — ‘Any treatment or process which is applied to another person’s goods is a supply of service.
Hence as per the application the chassis is sent to the applicant for building body. The question arises for consideration is
