In re Kailash Vahn Private Limited (GST AAR Tamilnadu)
In a recent ruling, the Authority for Advance Rulings (AAR) Tamilnadu addressed key issues concerning the GST classification and tax rates for body building activities on motor vehicle chassis provided by customers. The case, In re Kailash Vahn Private Limited, brought forward the question of whether truck body building activities should be classified as “job work” under the GST regime and how these activities should be taxed.
Background and Questions Raised
The applicant, Kailash Vahn Private Limited, is involved in the fabrication and truck body building business. The company builds truck bodies on chassis supplied either by independent private customers or Original Equipment Manufacturers (OEMs). The chassis is owned by the customer, and once the body is built, the vehicle is registered in the customer’s name.
The applicant sought an advance ruling on the following key points:
- Whether the body building activity can be classified as “job work” and considered as a supply of services under SAC 998881 as per GST Notification No. 11/2017-CT(R).
- If classified as “job work” and a supply of services, what would be the applicable GST rate — 18% under entry no. 26(ic) or 28% under entry no. 26(iv)?
- Whether the activity of body building on chassis provided by the principal would be regarded as a supply of goods or services.
Discussion and Findings
