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Gst on a specific type of work

21 November 2020

we are engaged in a business as we are making the truck body of a particular enterprises under a contract . All all trucks body of that unit are made by us with material. so which gst rate is applicable on us .??

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5 Replies

Shivam RC (Student) (23683 Points)
Replied 21 November 2020

Different components of Truck attracts different GST Rates Sir. Usually it varies from 18% to 28%.

Your case is a Composite Supply of Service and the Principal Rate ( Servicing portion ) will be applicable for you Sir. It is 18% Sir.

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ayusmita (Tax consultant) (5885 Points)
Replied 21 November 2020

As it comes under receipt of service it's GST rate will be 18%

JATINDER KUMAR (Accountant) (3662 Points)
Replied 21 November 2020

GST Rate 18% on making truck body

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 22 November 2020

Dear Yogesh

In term of circular 52/26/2018 GST :

1.Fabrication of Bus Involve 2 Situation:
If you are building bus & the CHASSIS is owned by you & you are supplying built-up bus to your customer, here the supply made is that of Bus, hence would attract GST @ 28%

2. If you are building body on CHASSIS provided by principal (enterprises) , then it is treated as Job work , the supply of services ,hence attracts GST @ 18%

So can charge GST accordingly as situation mentioned above.

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