In re Navya Electric Vehicle Private Limited (GST AAAR West Bangal)
The appeal before the West Bengal Appellate Authority for Advance Ruling (WBAAAR) concerned the classification under GST of supplies consisting of components of electric three-wheeler passenger or goods vehicles (e-rickshaws) in Completely Knocked Down (CKD) form. The principal issue was whether such supplies should be classified as a finished electrically operated vehicle attracting GST at the rate applicable to the vehicle itself or as individual parts and components.
The applicant had sought an advance ruling on the classification of a complete set of e-rickshaw components supplied in CKD form, stating that all necessary components, including the chassis, motor, battery, controller, body panels and differential, were supplied in a consolidated shipment to dealers or assemblers for assembly into a finished vehicle. The West Bengal Authority for Advance Ruling (WBAAR) examined Rule 2(a) of the General Rules for Interpretation of the Customs Tariff Act, 1975, judicial precedents, and an Office Order issued by the Customs Commissionerate, ICD Tughlakabad, identifying five major components—motor, transmission, axles, chassis and controller—as providing the essential character of an e-rickshaw.
Based on those materials, the WBAAR ruled that where a CKD supply included the motor together with any three of the remaining four major components in proportionate numbers required for assembly, the supply should be classified as the finished vehicle and taxed at 5%. Where the motor or any two of the remaining four major components were absent, the supply would be treated as components of an e-rickshaw and taxed at the rate applicable to parts.
