Clarification on Bus Body Building

Notification G.S.R (E) brings amendments to the Union Territory Goods and Services Tax Act, 2017, focusing on bus body building. The Central Government, acting on Council recommendations, introduces a crucial clarification in Notification No. 11/2017- Union Territory Tax (Rate) dated June 28, 2017.

Specifically, against serial number 26, item (ic) now includes an Explanation defining "bus body building" to encompass body construction on vehicle chassis under Chapter 87 of the Customs Tariff Act, 1975. This clarification, issued by Pramod Kumar, Director of the Government of India, aims to provide clarity and consistency in taxation related to bus body building activities.

The principal notification, No. 11/2017- Union Territory Tax (Rate), has undergone amendments, with the latest being No. 20/2019. Effective from the date of publication, this clarification ensures uniform interpretation and application of tax regulations in Union Territories. By including this explanation, authorities seek to eliminate ambiguity and streamline tax compliance for businesses engaged in bus body building.

These amendments align with broader efforts to enhance transparency and efficiency in tax administration across Union Territories. The Government of India continues its commitment to refining tax policies to foster economic growth and development.