In re Navya Electric Vehicle Private Limited (GST AAR West Bengal)
The Authority for Advance Ruling, West Bengal examined the classification and applicable GST rate on the supply of electric three-wheeler vehicles (e-rickshaws) in Completely Knocked Down (CKD) form. The applicant proposed supplying e-rickshaws as a single consolidated shipment containing all components required for assembly, such as chassis, motor, battery, controller, body panels and differential, to authorised dealers or assemblers. The issue arose because finished electric vehicles attract a concessional GST rate of 5%, whereas individual parts are taxed at higher rates of 18% or more. The applicant sought clarity on whether such CKD supplies should be treated as a finished vehicle or merely as a set of parts.
The Authority noted that the CGST Act and WBGST Act are pari materia and that classification under GST is aligned with the Customs Tariff Act, 1975 and the General Rules for Interpretation, particularly Rule 2(a). The Authority examined the meaning of “vehicle” under common parlance and the Motor Vehicles Act, 1988, observing that e-rickshaws were specifically brought within the ambit of that Act with effect from 7 January 2015. Under GST rate notifications and the Customs Tariff, e-rickshaws fall under HSN 87038040 and attract GST at 2.5% CGST plus 2.5% SGST.
