Electrically Operated Vehicles Including Three Wheeled Electric Vehicles Would be Classified Under Heading 8703 & Taxable at 5% | AAR

Case Details: Authority for Advance Rulings, Telangana Versatile Auto Components (P.) Ltd., In re - [2023] 154 taxmann.com 480 (AAR-TELANGANA)

Judiciary and Counsel Details

• • S.V. Kasi Visweswara Rao & Sahil Inamdar IRS, Member

Facts of the Case

The applicant was a manufacturer of low speed electric two wheeler and its spares & accessories. It approached the Advance Ruling Authority (AAR) to determine the taxability of electrically operated vehicles, including two & three wheeled electric vehicles.

AAR Held

The AAR noted that as per Circular No.179/11/2002-GST, electrically operated vehicle including three wheeled electric vehicle would be classified under Heading No. 8703 even if the battery is not fitted to such vehicle at the time of supply.

Therefore, in view of the above clarification, all electrically operated vehicles including three wheeled electric vehicles would be classified under HSN 8703 and taxable at 5% in terms of entry 242A of Schedule I of Notification No. 1/2017-Central Tax (Rate).