GST
TRT-2025-
AAR Telangana
Date:-02-09-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 02 September 2023
Key Pointers –
- The Applicant, M/s. Versatile Auto Components Private Limited, is a manufacturer of low speed electric two wheeler (below 250 Watts/0.25 KV) and spares & accessories for the same.
- Fabricated from superior quality raw materials & engineered to perfection, our products have gained huge appreciation from our customers for their salient attributes like Corrosion Resistance, Durable, Dimension Accuracy, Protection, and Sturdiness etc.
- The issue involved in this application is whether the low speed electric two wheeler are classifiable under HSN code – 87 or HSN code 87031010?
- The AAR observed that the Circular No.179/11/2002-GST in f.no. CBIC-190354/172/2002-TRU of Govt. of India Ministry of Finance clarified the rate and HSN code of electric vehicles. It has been clarified that all electrically operated vehicles including three wheeled electric vehicles are classified under HSN 8703 for the purpose of taxation under GST.
- Further the above entry does not have any reference to electrical and mechanical spare parts of the electrical vehicle. Therefore it cannot be inferred that parts of electrical vehicles fall under the above HSN code. Hence the goods “Electrical and Mechanical spare parts of electrical vehicles” fall under S.No 453 of Schedule-III of Notification no. 01/2017 dt:28.06.2017 i.e., “Goods which are not specified in Schedule I, II, IV, V or VI” falling in any chapter of HSN.
- Thus HSN code 8301 and S.No. 242A of Schedule –I will be applicable to electrically operated vehicles including two & three wheeled electric vehicles and Electrical & mechanical spare parts of electric vehicle are not covered by any description in the Notification No. 01/2017. Therefore they fall under residual entry S.No 453 of Schedule-III of Notification no. 01/2017 dt:28.06.2017 i.e., “Goods which are not specified in Schedule I, II, IV, V or VI” falling in any chapter of HSN.
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