In re Sincere Marketing Services Pvt. Ltd. (GST AAR Haryana)
1. Whether supply of chassis mounted with bus body, shall be treated as a supply of bus or separate supplies of the following:-
(i) Supply of chassis, taxable at the rate 28% as per the prescribed HSN; and
(ii) Provision of services in respect of activity of mounting/fabricating of bus body on the chassis wherein the said activity of mounting/fabricating is outsourced by the Applicant to the body builder.
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%.
2. 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 of the following:-
(i) Supply of chassis, taxable at the rate 28% as per the prescribed HSN; and
(ii) Provision of services in respect of activity of mounting/fabricating of bus body on the chassis wherein the said activity of mounting/fabricating is outsourced by the Applicant to the body builder.
The supply of chassis and the provision of services in respect of activity of mounting/ fabrication under two separate contracts to the same customer bodies, being principal supply (HSN Code 8707); classifiable under chapter heading 8707; taxable at the rate 28%.
3. Whether 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 Central Goods and Services Tax Act, 2017 (CGST Act, 2017) and leviable to GST. If the answer to the said question is in adverse, whether the recovery of the bus body building charges incurred by the Applicant on behalf of the customer in capacity of an agent, will be leviable at the rate of 18% as supply of services?
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 Central Goods and Services Tax Act, 2017 and thus, leviable to GST taxable at the rate 28%.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, HARYANA
1. Brief facts:-
1 1 The Applicant M/s Sincere Marketing Services Pvt. Ltd., 39 KM Stone, N.H.-8, Narsinghpur Village, Gurgaon, Haryana is registered under the GST laws vide registration no. 06AAACS1430P1ZD; and engaged in the business of trading of buses and chassis of bus. Additionally, in certain cases, also engaged in provision of services in respect of fabrication/mounting of bus body on chassis to its customer, wherein such services of fabrication/ mounting are being outsourced to a bus bodybuilder. In respect of the same, the applicant enters into a separate arrangement with body builder for mounting of bus body on chassis provided by the Applicant.
1.2 The Applicant has provided below a description of the transactions/ arrangements entered or proposed to be entered by the Applicant with its customer:
1.3 Type 1:- Contract for sale of chassis mounted with bus body
