Page 168 - GSTL_20th August 2020_Vol 39_Part 3

382 GST LAW TIMES [ Vol. 39
6.1.5 The Applicant understands that the situations described in Para
6.1.3 are squarely in Para 12.2(b) of the aforesaid circular and hence in terms of
Para 12.3 of the circular the fabrication of body in such situations would merit
classification as service and GST applicable in terms of Notification No. 20/2019-
Central Tax (Rate), dated 30-9-2019 would be applicable, which is currently 18%.
6.1.6 In view of aforesaid submissions and recent Notification being
No. 20/2019, dated 30-9-2019, there should not be any discrimination for levy
and collection of tax on bus body fabrication unit being carried on by the appli-
cant at Village Baggad vis-a-vis bus body manufacturing activity carried on by
another fabricator who will collect and deposit GST @ 18% only as per said circu-
lar, dated 9-8-2018 read with Notification, dated 30-9-2019.
6.2 In the matter produced before us for advance ruling, the ruling has
been sought on the question that Whether the supply towards provision of ser-
vices in respect of activity of mounting/fabrication of bodies on chassis by the
customer should be treated as supply of bus or provision of services in respect of
activity of mounting/fabrication of bus body on the chassis, wherein said activi-
ty of mounting/fabricating is outsourced to the applicant by the owner/provider
of chassis.
6.2.1 The chassis is originally manufactured by one of the unit of the
applicant registered separately as distinct person under GST Act and sold to
provider of chassis before receiving the chassis for fabrication of body.
6.2.2 As mention in the question that the chassis is manufactured by
one of the unit of the applicant registered separately as distinct person and as
mandate by the Motor Vehicles Act, the Chassis is delivered to the customer by
raising a separate invoice, paying road tax and after issuing the insurance policy
in the name of customer. By this act, it may be concluded that the supply of chas-
sis, by one of the unit of applicant, is complete once the chassis is handed over to
the customer and on such hand over, the customer becomes absolute owner of
such chassis.
6.2.3 After purchasing the chassis, customer is free to get the mount-
ing/fabrication of bus body from anywhere. Such fabrication/mounting work is
separate supply than supply of chassis manufactured by one of the unit of appli-
cant.
6.2.4 As per the term defined u/s. 2(68) of the CGST Act and as per pa-
ra 3 of the Schedule-II of the CGST Act “any treatment or process which is ap-
plied to goods of another persons is a supply of service”.
6.2.5 As per Section 2(68) of the CGST Act/SGST Act. The term job
worker means “any treatment or process undertaken by a persons on goods be-
longing to another registered persons and the expression job worker shall be
construed accordingly”.
6.2.6 The Motor Vehicle is not complete without a body. A chassis is
semi-finished goods and any treatment done by any other party on the chassis is
the activity of job work. Therefore it is supply of service and covered under
HSN-9988 which attracts tax 18% GST.
6.2.7 The ownership of chassis always remains with the customer who
has given chassis to applicant for building and mounting of body on job work.
Because it fulfils the main important condition of the definition of job work i.e.
process undertaken on goods belonging to another registered persons. The whole
process of body building and mounting is performed on the goods (Chassis) be-
longing to the customer therefore it is purely job work.
GST LAW TIMES  20th August 2020  168