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TMI Blog2022 (4) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... s the following activities on such chassis: (i) First the chassis of the Principal, either registered or unregistered, is received at VFPL registered premises. Thereafter, they make the drawing for type of the job to be undertaken and ascertain the type and quantity of materials required for the job. Depending on the work to be carried out i.e. Mounting of Tanker or Tipper, they place the order for purchase of the required materials such as steel sheets, nuts and bolts, etc. The steel sheets are then cut and bent as per the required dimensions and the bended edges are joined through the process of welding. In this manner, all the required parts are independently fabricated and then assembled to obtain the Tanker, Tipper, etc. Such tankers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id),(H), (iia) and(Hi) above. 9 (i) The term 'bus body building' has been defined as building of body on chassis of any vehicle falling under chapter 87 by virtue of Explanation which was inserted vide Notification No. 26/2019 CT(Rate) and the same reads as under: Explanation - For the purposes of this entry, the term "bus body building" shall include building of body on chassis of any vehicle falling under chapter 87 in the First Schedule to the Customs Tariff Act, 1975." (ii) Job work has been defined at Section 2(68) of the CGST Act as under: "Job work means any treatment or processing undertaken by a person on goods belonging to another registered pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/2017-Central Tax (Rate) dated 28-06-2017. Entry at item (id) covers only job work services as defined in section 2 (68) of CGST Act, 2017, that is, services by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, the entry at item (iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act. (i) It is submitted by VFPL that the above clarification expressly indicates that the activity of manufacturing services on physical inputs owned by others would be classifiable under 'Job-work' services in cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cable GST rate for bus body building activity : Representations have been received seeking clarifications on GST rates on the activity of bus body building. The doubts have arisen on account of the fact that while GST applicable on job work services is 18%, the supply of motor vehicles attracts GST @ 28%. 12.2 Buses [motor vehicles for the transport of ten or more persons, including the driver] fall under headings 8702 and attract 28% GST. Further, chassis fitted with engines [8705] and whole bodies (including cabs) for buses [8707] also attract 28% GST. In this context, it is mentioned that the services of bus body fabrication on job work basis attracts 18% GST on such service. Thus, fabrication of buses may involve the following two sit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarification in as much as they are undertaking the activity of bus body building on the chassis owned by the Principal. c) VFPL cited following Advance Rulings: (i) M/s AB N Dhruv Autocraft (India) Pvt. Ltd. reported at 2020 (41) GSTL 383 (AAR-Gujarat) (ii) Advance Ruling in the case of M/s SLN Tech-Fabs (Bengaluru) Pvt. Ltd. reported at 2020 (34) GSTL 290 (AAR-GST-Kar) (2) The activity of fabrication of body building on Tippers, Trailers etc., merits classification under SAC 998881, under "Motor vehicle and trailer manufacturing services", in terms of Sl. No. 535 of Annexure to Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017. (iii) Advance ruling in the case of M/s Commercial Vehicles Ltd. reported at 2020 (39) GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply of service. Therefore bus body building on customer owned chassis is supply of service. ii. Section 2(68) CGST Act defines Job work as any treatment or process undertaken by a person on goods belonging to another registered person. Therefore bus body building on chassis owned by GST registered customer is Job work and finds entry at Sr no 26(ic) to Notification 11/2017-CT(R). iii. And bus body building on chassis owned by un-registered customer is 'Manufacturing services on physical inputs (goods) owned by others, other than those registered under CGST Act' which finds entry at Sr no. 26(iv) to Notification 11/2017- CT( R). 10. As per the Scheme of Classification of services, We find subject supply merits to be classified at Headin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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