TaxTMI 
TaxTMI 
2021 (12) TMI 162
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.... pipes, angles and Channels of steel according to desired / required size. (b) Assembly/ joining of the above-mentioned fabricated pieces of iron and steel by way of welding with help of welding electrodes (copper coated wire) to give a shape of Tipper body. (c) Mounting/fixing of the assembled structure of the Tipper body on the chassis by welding with the help of welding electrodes and also in certain places with nuts and bolts. (d) Fixing of hydraulic kit by welding with help of welding electrodes (copper coated wire) for lifting the tipper body as and when required and finally finishing. The applicant has further submitted that- (a) The process for body building and mounting of the body involves procurement of miscellaneous inputs such as steel sheets, square tubes, windows, glasses, wiring harness, fittings inside body, paints, automobile parts from TATA Steels and other authorised steel/automobile dealers. These items are procured on payment of appropriate amount of GST which is claimed as ITC (input tax credit). (b) The chassis of the Tippers, Tankers, and Trucks etc are received on free of cost basis, under the delivery challa....
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....of body on chasis provided by customers attract GST @ 18% relying on order no. 09/2020 dated 02.06.2020 of AAR Madhya Pradesh. It is also informed that no proceedings on the question raised by the applicant are pending. 7. The applicant was granted a personal hearing on 15.06.2021 which was attended by Shri Dushyant Kumar & Shri Vishal Srivastava (authorized representative) through video conferencing during which they reiterated the submissions made in the application of advance ruling. DISCUSSION AND FINDING 8. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the UPGST Act. Further for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the 'COST Act'. 9. We have gone through the Form GST ARA-01 filed by the applicant and observed that the applicant has ticked following issues on which advance ruling required- ....
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....ST. Further, chassis fitted with engines [8705] and whole bodies (including cabs) for buses [8707] also attract 28% GST. In this context, it is mentioned that the services of bus body fabrication on job work basis attracts 18% GST on such service. Thus, fabrication of buses may involve the following two situations: a) Bus body builder builds a bus, working on the chassis owned by him and supplies the built-up bus to the customer, and charges the customer for the value of the bus. b) Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job work). 12.3 In the above context, it is hereby clarified that in case as mentioned at Para 12.2 (a) above, the supply made is that of bus, and accordingly supply would attract GST @ 28%. In the case as mentioned at Para 12.2 (b) above, fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and 18% GST as applicable will be charged accordingly. 13. The said circular clarify that GST applicable on the activit....
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....e also find that 'job work' and 'manufacture' have been separately defined under Section 2(68) and Section 2(72) respectively of the CGST Act, 2017. As per Section 2(72) of the CGST Act, 2017 "manufacture" means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordingly. As per Chapter note 6 of the Chapter 87 of the First schedule to the Central Excise Tariff Act, 1985, building a body or fabrication or mounting or fitting of structures or equipment on the chassis falling under heading 8706 shall amount to 'manufacture' of a motor vehicle. As such, body building activity by the applicant on the chassis of the principal is neither job work nor manufacturing service. 16. We are of the view that the CBIC Circular No. 34/8/2018-GST, dated 1-3-2018 is relevant to the instant case, which has clarified as under : S.No. Issue Clarification 1. Whether activity of bus body building, is a supply of goods and services. In the case of bus body building there is supply of Thus, classification of this goods or service....