Page 166 - GSTL_20th August 2020_Vol 39_Part 3

380 GST LAW TIMES [ Vol. 39
ing/fabrication of bus body on the chassis wherein the said activity of mount-
ing/fabrication is outsourced to the Applicant by owner/provider of chassis in
following two scenarios :-
4.1 The chassis is originally manufactured by one of the unit of the ap-
plicant registered separately as distinct person under GST Act and sold to pro-
vider of chassis receiving the chassis for fabrication of body.
4.2 The chassis is originally manufactured by some other OEM and
sold to provider of chassis before receiving the chassis for fabrication of body.
5. Concerned officer’s view point :
The concerned officer is of the view that in both the cases for which the
applicant has asked for advance ruling will be taxed by 18% (9% CGST and 9%
SGST) under services falling under SAC 9988 81 - “Motor vehicle and trailer
manufacturing services” and [under Entry No. 26(iv)] as “Manufacturing ser-
1
vices on physical inputs (goods) owned by other”.
6. Record of personal hearing :
6.1 CA. P.D. Nagar, Authorised Representative of the applicant for per-
sonal hearing the submissions already made in the application. The Applicant
states that -
6.1.1 The Bus chassis manufactured by the Vehicle assembly plant are
either :
(a) Sold in chassis form to the dealer at 28% GST upon which the dealer
further sales to end customer charging GST @ 28%. End customer
takes the vehicle to a body builder of his choice. The body builder
fabricates the body on chassis so provided and supplies the body
charging 18% GST as job work, in terms of Circular No.
52/26/2018-GST, dated 9-8-2018 or
(b) Stock transferred to a depot and then sold in chassis form to the
dealer at 28% GST upon which the dealer appoints an independent
bus body builder to fabricate the body; the body builder supplies
the body to Dealer and dealer sales the complete Bus to its custom-
er, or
(c) Sent to the Bus Body Plant after paying GST @ 28% for fabrication of
the bus body, The Bus plants avails input credit of GST paid on
Chassis, fabricates the body on chassis and after that the complete
bus is sold/supplied to the dealer/customer/Depot at 28% GST.
2 6.1.1 Currently the Bus Body plant is manufacturing Bus Bodies
owned by VECV only. Now some of our customers/dealers have approached the
applicant to fabricate bodies on chassis being purchased by them from dealers of
VECV and also on chassis purchased by them by other chassis manufacturers.
6.1.2 There could be following scenarios for customer after purchasing
chassis, as owner of chassis approaching our Bus Manufacturing Plant for fabri-
cation of Body.
(i) The potential customer has purchased the chassis from another
chassis manufacturer and is approaching applicant for fabrication of
body. While sending the chassis to applicant, the customer owns the

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1 Corrected by Rectification Order dated 9-6-2020.
2 Paragraph number as per official text.
GST LAW TIMES  20th August 2020  166