Activity of tanker body building is a supply of service and taxable at 18%
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- Last Updated on 10 September, 2021
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Case details: Authority for Advance Rulings, Kerala CC Fabs, In re - [2021] 130 taxmann.com 70 (AAR - KERALA)
Judiciary and Counsel Details
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- Sivaprasad S. and Senil A.K. Rajan, Member
- K.A. Joseph, CA for the Applicant.
Facts of the Case
The applicant was engaged in tanker body fabricating and body building on the chassis given by the customer on job work basis. It filed an application for advance ruling to determine whether the activity of tanker body building on job work basis, on the chassis supplied by the customer would be treated as supply of goods or supply of service.
AAR Held
The Authority for Advance Ruling observed that as per Para 3 of Schedule II of the CGST Act, 2017, any treatment or process which is applied to another person’s goods is a supply of service. In the instant case, the applicant would be fabricating body on the chassis belonging to the customer. The ownership of the chassis would remain with the customer and at no stage of the process of fabrication of the body; the title in the chassis would be transferred to the applicant. Therefore, the activity would be squarely covered under Para 3 of Schedule II of the CGST Act, 2017 as a treatment or process which would be applied to another person’s goods and accordingly would be treated as supply of services classifiable under Service Accounting Code 998881 and taxable at rate of 18% under GST.
List of Cases Referred to
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- Kondody Autocraft (India) (P.) Ltd., In re [2019] 104 taxmann.com 34/74 GST 36 (AAR – Ker.) (para 4.3)
- ABN Dhruv Autocraft (India) (P.) Ltd., In re [2020] 119 taxmann.com 196/[2021] 83 GST 406 (AAR – Guj.) (para 4.3).
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