In re Tvl Anamallais Engineering (p) Ltd. (GST AAR Tamilnadu)
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?
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. If it is supply of Service, what is the applicable rate of GST and its SAC code If it is supply of goods, what is the applicable rate of GST and its HSN?
The service rendered is classified under SAC 998881 and 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 (as amended) and Sl.No.26 of Notification No.I1(2)/CTR/532(d-14)/2017 vide G.O. (Ms) No. 72 dated 29.06.2017(as amended) respectively.
FULL TEXT OF THE ORDER OF AUTHORITY OF ADVANCE RULING, TAMILNADU
Tvl Anamallais Engineering (p) Ltd., No. 16, Mani Street, Near Railway Station, Tamil Nadu. Pollachi. 642 001. (hereinafter referred to as the ‘Applicant’) is registered under the GST Vide GSTIN 33AABCA6615K1ZU. They have 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?
The Applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The applicant has stated that they are Private Limited Company engaged in bus body building activity. They get enquires from the customers for building a bus body on the chassis belonging to them on job work basis. On receipt of enquiry from customers, they will provide the quote according to the specification given by the customer. The customers will hand over the chassis (Ashok Leyland, TATA, EICHER etc.) purchased by them at the applicants’ yard for fabricating the bus body. Upon receipt of chassis, a work order with the specifications of the Bus Body will be raised on the customers, which will be signed by the Customer as a token of acceptance. The flow of work is as follows:-
