18% GST leviable on body building of commercial vehicles on chassis belonging to customer: AAR
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- Last Updated on 7 December, 2022
Case Details: Authority for Advance Rulings, Kerala New Grand Auto Body Works, In re -  145 taxmann.com 292 (AAR-KERALA)
Judiciary and Counsel Details
- Dr S. L. Sreeparvathy & Abraham Renn S, Member
- Aji V. Dev & Alan V. Dev, Advs. for the Appearing parties.
Facts of the Case
The applicant was carrying on the business of body building of commercial vehicles where the customer would purchase the chassis and handover to applicant for fabricating the body. It filed an application for advance ruling to determine taxability of work done by body building of commercial vehicles.
The Authority for Advance Ruling observed that applicant would be fabricating body on chassis belonging to customer where ownership of chassis would remain with customer and at no stage of process of fabrication of body, title of chassis would be transferred to applicant. Therefore, this activity would squarely be covered under Para 3 of Schedule II of the CGST Act, 2017 as treatment or process applied to another person’s goods and accordingly it shall be treated as supply of services. Therefore, GST shall be leviable at rate of 18% as per entry at Sl No. 26 (iv) of Notification No. 11/2017 Central Tax (Rate) dated 28.6.2017.
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