TaxTMI 
TaxTMI 
2021 (7) TMI 481
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....or structural fabrication of tanker will be procured and tanker body will be built on the chassis. The processes involved in the manufacturing activity are; (a) receiving chassis at workshop; (b) purchase of raw steel; (c) cutting and bending of raw materials; (d) welding of all cut and bend parts; (e) assembly of all fabricated parts and statutory parts; and (f) final product on chassis and delivery of the tanker with license. 2. At the outset, the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are same except for certain provisions. According....
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....ed good and any treatment done by any other party on the chassis of principal is the activity of job work. The ownership of the chassis is not transferred to the job worker. 4.2. The activity of body building on chassis provided by the owner is in nature of service and in this regard CBIC has issued clarification vide Circular No.52/26/2018-GST dated 09.08.2018. In the circular it is categorically clarified that fabrication of body on chassis provided by the principal (not on account of body builder), would merit classification as service and 18% GST as applicable will be charged. Further for carrying out the activity of building and mounting of the body, the customer provides or delivers the chassis and ownership of such chassis is not ....
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....der HSN code 9988 and hence should be taxed at total rate of 18% GST in terms of clear description of services provided in the scheme of classification of services as Annexure to Notification No.11/2017-CT (Rate) dated 28.06.2017. The applicant also relied upon the Advance Ruling No. KER/39/2019 dated 02.03.2019 given by Kerala Authority to M/s. Kondody Autocraft (India) Pvt. Ltd, Kottayam and also Advance Ruling Advance Ruling No. GUJ/GAAR/R/30/2020 dated 02.07.2020 given by Gujarat Authority to M/s. ABN Dhruv Autocraft (India) Pvt. Ltd. 5. Contentions of the Jurisdictional Officer: 5.1. The jurisdictional officer submitted that the applicant is dealing in Trailers and semi Trailers, other vehicles falling under HSN - 87161000, Paint....
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.... of the customer. The applicant is collecting the charges for the activity which includes the cost of inputs / material used by the applicant and the labour charges for fabrication of the body. Thus it is evident that the applicant is fabricating body on the chassis belonging to the customer. The ownership of the chassis remains with the customer and at no stage of the process of fabrication of the body, the title in the chassis is transferred to the applicant. Therefore, the applicant is fabricating the body on the chassis belonging to another person and hence the activity is squarely covered under Para 3 of Schedule II of the CGST Act, 2017 as a treatment or process which is applied to another person's goods and accordingly is a suppl....
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.... at SI No. 26 (iv) - 9988 - "Manufacturing services on physical inputs (goods) owned by others - Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and (iii) above" of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017. In view of the observations stated above, the following rulings are issued; RULING 1. Whether the activity of tanker body building on job work basis, on the chassis supplied by the customer, is supply of goods or supply of service? The activity of tanker body building on the chassis supplied by the customer is a supply of service. 2. If it is supply of goods, what is the applicable rate of GST? Not relevant in view of the answer t....