Important Keyword: Bus body building GST rate, bus fabrication GST, UTGST bus services, Notification 26/2019 GST, chassis body building tax, GST for workshops, transport GST compliance,
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[F. No.354/150/2019 -TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 22nd November, 2019
Notification No. 26/2019 - Union Territory Tax (Rate): Seeks to insert explanation regarding Bus Body Building in Notification No. 11/2017-Union Territory Tax (Rate) dt. 28.06.2017.
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R....(E).- In exercise of the powers conferred by sub-section (3) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017- Union Territory Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number
G.S.R. 702(E), dated the 28th June, 2017. In the said notification, in the Table, against serial number 26, in column (3), in item (ic), the following Explanation shall be inserted, namely: -
“Explanation- For the purposes of this entry, the term “bus body building” shall include building of body on chassis of any vehicle falling under chapter 87 in the First Schedule to the Customs Tariff Act, 1975.”
(Pramod Kumar)
Director,
Government of India
Note: -The principal notification No. 11/2017 - Union Territory Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 702 (E), dated the 28th June, 2017 and was last amended by notification No. 20/2019-Union Territory Tax (Rate), dated the 30th September, 2019 vide number G.S.R. 732(E), dated the 30th September, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 26/2019 - Union Territory Tax (Rate)
Q1: What is Notification No. 26/2019 – Union Territory Tax (Rate)?
Answer:
It inserts an explanation defining bus body building under UTGST service rates to ensure correct GST classification and taxation.
Q2: What exactly is bus body building?
Answer:
It means building or fabricating a bus body on a chassis falling under Chapter 87 (motor vehicles).
Q3: Is bus body building goods or service?
Answer:
It is treated as a service, not goods, when body is built on customer-provided chassis.
Q4: Why did GST Council clarify this?
Answer:
To avoid:
Wrong GST rates
Litigation
Classification disputes
Q5: What GST rate applies to bus body building?
Answer:
It falls under service category rates as per Notification 11/2017 UTGST (Rate). Check latest rate schedules or consult a GST expert.
👉 Get help: https://finodha.in/gst-compliance/
Q6: If I sell a fully built bus, does this rule apply?
Answer:
No ❌
Selling a complete bus is goods supply, not service.
Q7: Does this apply in Union Territories only?
Answer:
Yes, for UTGST.
But similar provisions exist under CGST/SGST/IGST for other states.
Q8: Who is affected by this notification?
Answer:
Bus body builders
Fabrication workshops
Transport companies
Government contractors
Q9: Is GST registration required for small workshops?
Answer:
Yes, if turnover exceeds threshold.
👉 Register easily: https://finodha.in/online-gst-registration/
Q10: Can I claim Input Tax Credit (ITC)?
Answer:
Yes ✅
You can claim ITC on:
Steel
Paint
Labour inputs
Fabrication materials
If properly invoiced.
Q11: What HSN/SAC code applies?
Answer:
Generally service-related SAC codes apply. Confirm exact classification with your consultant.
Q12: How to issue invoice?
Answer:
Issue service invoice, not goods invoice. Include:
GSTIN
SAC code
Service description
GST breakup
Q13: What happens if I classify wrongly?
Answer:
You may face:
❌ Penalty
❌ Interest
❌ GST demand notice
Avoid risk → https://finodha.in/gst-compliance/
Q14: Is job work same as bus body building?
Answer:
Yes, mostly treated like job work/service, because customer provides chassis.
Q15: Can Finodha help with compliance?
Answer:
Absolutely 👍
Finodha supports:
GST registration
Return filing
Compliance
Business setup
Explore:
GST Return Filing → https://finodha.in/gst-return-filing/
Setup Business → https://finodha.in/setup-business/
Private Limited → https://finodha.in/private-limited-company/
📢 Conclusion
Notification No. 26/2019 – Union Territory Tax (Rate) simplifies taxation for the bus body building industry. If you fabricate or modify buses, ensure you treat the activity as service supply and comply with GST rules correctly.
Download PDF: Notification No. 26/2019 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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