SAC code and rate of GST on consideration received for moving chasis

[Hariharan Sundaram]

Dear experts, one person is engaged in the movement of vehicle chasis fitted with engine received from the automobile manufacturer from one place to other as per the directions of the automobile manufacturer. Normally such vehicle chasis are driven by the drivers on road and termed as convoy . Kindly clarify under which category this service is falling (SAC ) and the rate of GST thereof. It is a lumpsum contract and the driver wages, diesel and other expenses are borne by the person who is moving the chasis.

[Yash Shah]

Dear Sir,

My counter question would be - Whether such person who is moving the goods is falling under the definition of GTA as per Clause (ze) of Notification No. 12/2017 ?

[Shilpi Jain]

If there is no issue of consignment note, may not be a GTA.

Since it is transportation services it will be under HSN 9965 and rate of tax 18% if not a GTA

AI Summary

Classification of chassis movement services: GTA status determines whether GTA rules or HSN 9965 transportation tax applies. Question whether moving vehicle chassis driven as convoys for a manufacturer constitutes a Goods Transport Agency; if the mover meets the GTA definition and issues consignment notes the GTA regime applies, but where there is no consignment note the activity is transportation service classified under HSN 9965 and taxed at the standard GST rate for such services, subject to factual verification of documentation and GTA criteria.