Case Law Details
In re Aromal Manoj (GST AAR Kerala)
AAR Kerala in the case of Aromal Manoj examines the GST liability for the activity of bodybuilding on motor vehicle chassis provided by customers. The AAR carefully considered the nature of the activity and its classification under Schedule II of the CGST Act. It was concluded that bodybuilding on customer-supplied motor vehicle chassis qualifies as a supply of services under Para 3 of Schedule II. The ownership of the chassis remains with the customer throughout the process, establishing the service nature of the activity.
Furthermore, the AAR determined the applicable rate of GST and service code for the activity. The classification fell under Service Accounting Code (SAC) 998881 – “Motor vehicle and trailer manufacturing services.” The rate of GST applicable to this service was found to be 18% (9% CGST + 9% SGST) based on the entry at SI No. 26(ic) of Notification No. 11/2017 Central Tax (Rate).
Additionally, the AAR addressed the classification and tax rate for accident repairing jobs performed on a lump sum price basis. These services were appropriately classified under SAC 998714 – “Maintenance and repair of transport machinery and equipment.” The applicable GST rate for such services was also determined to be 18% (9% CGST + 9% SGST) as per entry at SI No. 25(ii) of Notification No. 11/2017 Central Tax (Rate).
Conclusion: In conclusion, the AAR ruled that bodybuilding services on motor vehicle chassis supplied by customers are indeed a supply of services liable to GST at the rate of 18%. The classification under SAC 998881 and the associated tax rate were established based on the specific provisions and explanations provided in the CGST Act. Similarly, accident repairing jobs performed on a lump sum price basis were classified under SAC 998714 and subject to the same 18% GST rate.
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