The Authority for Advance Ruling (AAR) in Karnataka on the filing of an application by the M/s SLN Tech-Fabs (Bengaluru) Pvt. Ltd. ordered that activity of fabrication of Body Building on Tippers, Trailers attracts 18% GST.
In the application the assessee who is M/s SLN Tech-Fabs (Bengaluru) Pvt. Ltd., engaged in the activity of providing services of Transport solutions, in the field of truck body and fabrication of transport equipment such as tippers, trailers, containers, etc. The applicant is charging a total of 28% of Goods and Service Tax (GST) wherein the total tax was the aggregate of 14% Central Goods and Service Tax (CGST) and 14% Karnataka Goods and Service Tax (KGST). However, the applicant filed an application asking that can the rate of Goods and Service Tax can be reduced to 18%.
The AAR was considering whether the applicant can reduce the Goods and Service Tax (GST) from 28% to 18% or not?
The AAR bench comprising of Dr. Ravi Prasad M.P., a Member of State Tax and Sri Mashhood ur Rehman Farooqui, Member at central tax held that 28% of Goods and Service Tax (GST) is applicable on all the activities which are considered to be the ‘supply of goods’.
Further, they also held that the applicant is engaged in the business which is covered under the ambit of activity of fabrication of Body Building on Tippers, Trailers attracts which attracts 18% of GST.
The AAR also observed that, all the activities which are covered under the ambit of supply of goods will be charged at the rate of 28% of the Goods and Service Tax (GST) and not less than 28%. However, the Activity of the fabrication of Body Building on Tippers, Trailers attracts 18% GST.
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