Order date: 10 August 2022

Fact 

• The applicant, M/s Hasmukhlal Jivanlal Patel, is engaged in building bodies of various vehicles falling under Chapter 87 of the First Schedule to the Custom Tariff Act such as mounting of tankers, tippers etc. on chassis provided by the owner of such chassis, either registered or unregistered. 
• The applicant has submitted that the activity undertaken by them is in the nature of working upon the goods i.e. chassis supplied by the Principal and converting the same into a Mounted Tanker, Tipper, etc. Therefore, the activity, as per their understanding, would be in the nature of supply of services. As per the Scheme of Classification of services in the Annexure to Notification No. ll/20l7 Central Tax (Rate) and corresponding SGST/ IGST Notifications, their services would be covered under the main head of 9988 @18% GST. 

Issue 

• Whether the activity undertaken by the Appplicant i.e. bus body building would be covered under the category of Supply of Services? 

Order 

• The authorities relied on the case of M/s AB N Dhruv Autocraft (India) Pvt. Ltd. reported at2020 (41) GSTL 383 (AAR Gujarat) and other cases stated by the applicant wherein it was held that the activity of bus body building on the chasis provided/supplied by Principal covers under the category  of Service and liable to GST @ 18%. The issue and facts in all the Advance Rulings are similar to the instant case and therefore it has persuasive value in the identical matter. 
• Further, the applicant is carrying out the activity of mounting/fabrication of body on the chasis supplied by the principal. Accordingly, such activity would be supply of service as principal supply.
• AAR also find that it's evident from Circular No. 52/26/2018-GST dated 09.08.2018 par  12.2(b) the body is built on the chassis provided by the principal/customer and the fabrication charges, has been charged then the activity amounts to Supply of Service and attracts 18% GST. 
• Accordingly, the rate of tax in both the cases if chasis is supplied by the registered person (principal) i.e. having GSTIN and unregistered person (principal) i.e. not having GSTIN would be 18% as per Entry No.26 (ic) and 18% as per Entry No. 26(iv) respectively. This activity merits classification SAC 998882 'other transport equipment manufacturing services' as per Annexure attached to Notification No. 11/2017-cr (Rate) dated 28.6.17.