GST RATE AND HSN/SAC CODE

What is the HSN/SAC Code of the Worker who Builds or Fabricate the Body in Tipper or Buses and what is it's GST Tax Rate.
Replies (8)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) rates and Harmonized System of Nomenclature (HSN)/Services Accounting Code (SAC) for fabricating vehicle bodies, specifically for tippers and buses. It differentiates between job work, where the customer provides the chassis and materials, and the sale of a fabricated body. For job work, the SAC code is 998881 with an 18% GST rate, and Input Tax Credit (ITC) is claimable on materials purchased. If the fabricated body is sold to the customer, HSN code 8707 with a 28% GST rate applies.

Fabrication of body of bus done on Job work basis attracts GST rate of 18% and SAC code is 998881

Deepa.B
When Selling a Fabricated Body to Customer, it's HSN Code 8707 and GST Rate 28%,right?

Yes. If it's sale of Fabricated body the HSN code 8707 and rate 28% is correct

Dear Deepa.B Sir
Case (1). The Chassis of the Motor Vehicle and materials required for the fabrication of it's body are supplied by the customer himself.The body is fabricated in our workshop and fitted to the customer chassis.Hete is the HSN Code/SAC Code and what is the GST Tax Rate
Case(2).The customer supply only the chassis of the Motor Vehicle.All the materials required for the fabricating the Body are Purchased at Our GST Number.The Body is fabricated in our workshop and fitted to the customers chassis.Are you eligible to claim ITC Credit here?.What is the HSN Code/ SAC Code for such transaction and what is the GST Tax Rate ?Please clear the above doubts.

Case 1- In this case it's purely supply of service. Hence only SAC code 998881 with GST rate 18%

Case-2-Fabrication of body on the chassis provided by customer would be still classified as service of job work and hence attract GST rate of 18% with same above mentioned SAC code as per the clarification by CBIC. You are eligible to claim ITC on all materials purchased in the process of fabrication.

For more information please Check Point 12 of  CGST circular 52/26/2018 dated 09.08.2018

Case (2) is sales of fabricated body to the customer.

Please elaborate.

Because there are a few advance rulings which have taken the same view. Inspite of the fact that advance rulings are specific to the applicant and cannot be generalised but still it throws some light on whether interpretation on similar lines are considered reasonable and justifiable.

HSN code 8716 GST rate

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
11 July 2026
CA semi qualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT , CA SemiQualifie

Vakilsearch.com

Chennai

CA Inter

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

G A R U D & Associates

New Delhi

CA Inter

View Details
Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Company
21 July 2026
Chartered Accountant

Keshri & Associates

Thiruvananthapuram

CA

View Details
Follow