Question ID : 29618

Classification

Repairs maintanace of car other vehicle.can we classify the repairs maintanance service as principal supply attaract 18 gst rate to repairs maintanance though some spare parts used in repairs having gst rate of 28. please clarify whether we can apply principal of composite supply attract rate of repairs maintance.

Answer ID : 65608

charged seperately

Answer ID : 65616

There is always a chance for the authorities to dispute that the supply of spare parts as principal supply and the service of fitting the part as a supply depending on the supply of the spare parts. Charging for the goods and services separately only will reduce the tax liability and also satisfy the compliance.

Answer ID : 68700

Normally repair maintenance of car (commonly called as service), involves labour and material both, whereby principle supply is Service. One can go ahead a view that its a composite supply liable to be GST as services. However, there are reasonable chances, that department may not agree to it at initial levels.

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