What is the rate of GST on vehicle body building and mounting on the chassis?

vehicle body building

Case Title

Adithya Automotive Applications Pvt. Ltd.

Court

Authority for Advance Ruling, Uttar Pradesh

Honorable Judges

Member Ajay Dixit and Ministhy 

Citation

2021 (11) GSTPanacea 86 HC Uttar Pradesh

UP/AAAR/19/2021

Judgement Date

25-November-2021

Council for Petitioner

Mr. Anil dave

Council for Respondent

Not applicable

In favour of

Revenue

Section

Section 101 of CGST Act,2017

The Appellate Authority for Advance Ruling, Uttar Pradesh bench of Member Ajay Dixit and Ministhy S, held that 18% GST is leviable on vehicle body building and mounting on chassis.

vehicle body building

FACTS OF THE CASE

The appellant was engaged in bodybuilding and mounting of bodies on the chassis of different models of Tippers, Tankers, Trucks and Trailers provided by the principal. It filed an application for an advance ruling to determine the taxability of body-building activity on the chassis provided by the principal. The Authority for Advance Ruling held that 18% GST would not be applicable to body-building activity on the chassis provided by the principal. It filed an appeal against the order.

vehicle body building

COURT HELD

The Appellate Authority for Advance Ruling observed that the appellant was carrying on the bodybuilding process on physical inputs, i.e. chassis owned by the principal. Circular No. 38/12/2018 dated 26-3-2018 has clarified that the job worker, in addition to the goods received from the principal, can use his own goods for providing the services of job work. In the instant case, the chassis delivered to the Appellant would remain in temporary possession only for a certain time to carry out the process of job work as per the direction of the principal. Therefore, bodybuilding and mounting of the body on the chassis supplied by the Principal by collecting job work charges for such fabrication work would be taxable at 18%.

vehicle body building

ANALYSIS OF THE JUDGEMENT

As per the above case, we analyse that 18% GST leviable on vehicle body building and mounting on chassis.

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Adithya Automotive Applications Pvt. Ltd.

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Uttar Prsdesh AAAR

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