9911796707
TMI Blog2022 (10) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are the same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under, 3. The applicant requested an advance ruling on the following: 3.1. Whether the activity of commercial vehicles body-building on a job-work basis, on the chassis supplied by the customer, is a supply of goods or a supply of services? 3.2. If it is a supply of goods, what is the applicable rate of GST? 3.3. If it is a supply of services, what is the applicable rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities that are to be treated as a supply of goods and a supply of services. Paragraph 3 of Schedule II deems "treatment or process which is applied to another person's goods" as a supply of service. lt is further contended that the applicant's activity is in the nature of treatment or process applied to the chassis provided by a 3rd person and therefore will squarely fall under Paragraph 3 of Schedule II. It is also pointed out that the applicant's activity falls within SAC 9988, ie manufacturing services on physical inputs (goods) owned by others. 4.3. Further the applicant also places reliance on Circular No.52/2018, which clarified the fabrication of buses into two situations as follows:- a. Bus body builder, working ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scussion and Finding: 7.1. The matter was examined in detail. The applicant is providing services of body building of commercial vehicles used for carrying goods on the chassis supplied by the customers. The body is built as per the requirement of the customers. The main issue to be determined is whether the activity constitutes a supply of services or supply of goods. 7.2. As per Para 3 of Schedule II of the CGST Act, 2017 which lists out the activities or transactions to be treated as supply of goods or supply of services; any treatment or process which is applied to another person's goods is a supply of service. In the instant case, the applicant is building a body of commercial vehicle for carrying goods on the chassis supplied by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice. As such, they are characterized as outsourced portions of a manufacturing process or a complete outsourced manufacturing process. This Heading covers manufacturing services in which the output is not owned by the unit providing this service. Therefore, the value of the services in this Heading is based on the service fee paid, not the value of the goods manufactured. SAC - 99888 under Heading 9988 pertains to Transport equipment manufacturing services and Sub - Heading 998881 pertains to Motor vehicle and trailer manufacturing services. Therefore, the activity of the applicant as discussed above is appropriately classifiable under Service Accounting Code 998881. 7.4. Accordingly, the activity is liable to GST at the rate of 18% [9% ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
