The Kerala Authority of Advance Ruling (AAR) ruled that Tanker bodybuilding on job work basis, on chassis supplied by the customer is Supply of Services and 18% GST is payable. The applicant, CC FABS is engaged in tanker body fabrication on the chassis given by the customer on a job work basis. The customers purchase the chassis and hand it over to the applicant for fabricating the tanker body. On receipt of chassis, a work order with the specifications of the tanker body will be raised and on acceptance of the same by the customer, the materials used for structural fabrication of the tanker will be procured and the tanker body will be built on the chassis. The processes involved in the manufacturing activity are receiving chassis at the workshop; purchase of raw steel; cutting and bending of raw materials; welding of all cut and bend parts; assembly of all fabricated parts and statutory parts; and final product on chassis and delivery of the tanker with license.
Source Taxscan
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