gst on services of 2 wheelers / motor cars (automobile industry)

[Richa Goyal]

An automobile showroom having 1 unit as sales department & another being service department. vehicles comes for servicing wherein -

1. At times service charges constitutes major portion of billing. Eg. In a bill of ₹ 1100/- say ₹ 800/- is the service charge and 300/- is the cost of parts.

2. At the other instance the cost of parts constitutes major portion in billing. Eg. In a bill of ₹ 12000/- say ₹ 800/- is the service charge and the rest is the cost of parts fitted while servicing - ₹ 11200/-.

GST on Service charge is @ 18% while on parts its at 5%,12%, 18%.

Ques :- Could this be a composite supply of services and be charged on total sum at 18% as bills are issued as a single service bill.

AI Summary

Composite supply characterisation denied; service and parts must be classified and taxed separately in automobile servicing.
Whether a single invoice combining labour/service charges and replacement parts for automobile servicing can be treated as a composite supply. Experts reject composite-supply characterisation and require separate classification and taxation of the service element and the supply of parts according to their respective natures and applicable tax treatments.