Question 34:

My Client is doing business of Truck Body Building (GST @ 28%). It is fixed on the chasis of trucks. They are into repair of old truck bodies also.
I want to know -
1-  Whether E-Way bill is applicable on new body Buidling or not, if yes then what to be filled in Transporters details.
2-  If E-way is applicable, whether E-way bill is applicable on repair also
3- Whether Classification in case of repair shall be the same as for Truck Body Building (GST @28%) or as Service (GST @18%) on total value of service and material being the main supply and material being the secondary supply. (Composite supply).

Answer

Point wise reply as follows:-

1. When new truck is sent after Body Building it contains temporary number. Accordingly it is considered as movement of goods. Thus, E-way bill is required in this case and that temporary number is required to be filled in vehicle number in Transporters details. For clarification FAQ given by CBEC is reproduced below:
·  I am dealer in tractors. I purchased 20 tractors from the manufacturer. These tractors are not brought on any motorized conveyance as goods but are brought to my premise by driving them. Also, these tractors have not got the vehicle number. Is e-way bill required in such cases'
E-way bill is required in such cases. The temporary number or any identifiable number with the tractor have to be used for filling details of the vehicle number for the purpose of e-way bill generation.

2. There is no need to generate e-way bill in case of repair of vehicle.

3. In earlier tax regime Chapter note (5) of Chapter 87 was relating to Body Building and it was considered as manufacture. But Central Excise Tariff is not applicable in GST. For GST, you can refer Custom Tariff and there is no such corresponding chapter note in Custom Tariff. Now there can be two types of transactions:

1) You are purchasing chasis and selling it after Body Building. No problem tax rate is 28%.

2) Your customer is sending chasis and you are doing work of Body Building as a service. 

Please let us know how you are charging 28% of tax so that we can proceed with it.

So far as repairing is concerned, it is a composite supply but always be a issue of dispute whether rate of tax applicable to parts should be charged or rate of tax applicable to service is to be charged. The practice adopted is to make separate invoice for material and service. This is to avoid litigation.

Now coming to question of rate of tax applicable to new Body Building and repair. The repair will always attract 18% because it is not manufacture of new product irrespective of size of repairs. (Reply dt. 20/4/2018)