Order Date – 03 February 2023

Facts –

• The Applicant, Pushkar Raj Singh, is engaged in tipper body building and fabrication and mounting the same on the Chassis supplied by the customers.
• They were treating the activity of building and fabrication of Tipper Body and mounting the same on chassis owned and supplied by the customers with installation services as Supply of Goods and thereby classifying the same under Tariff Item No. 8707 and charging GST @ 28%.

Issue –

• Whether the activity will result in supply in goods or services and what will be applicable GST?

Order –

• The AAR observed that the Circular no. 52/26/18-GST dated 9th August, 2018 provides a clarification regarding applicability of GST on various goods and services which includes Bus Body Building as the supply of motor vehicle or job work. The advance ruling sought by the party gets squarely covered under Para 12.2 and 12.3 of the said circular.
• If the activity of fabrication and mounting of body is done on the chassis owned by applicant and using his own inputs & capital goods, the same shall amount to supply of goods and shall merit classification under HSN 8707, attracting 28% of GST.
• On the contrary if the activity of fabrication and mounting of body is done on the chassis supplied by the customer using their own inputs & capital goods amounts to supply of service, in terms of CBIC Circular dated 09.08.2018 and merits classification under SAC 9988, attracting 18% of GST.