Case Law Details
In re V.S.T Tillers Tractors Ltd. (GST AAR Karnataka)
Whether the applicant is right in classifying certain components, spares and accessories with HSNs under reference applicable to Tractors, Tillers and other farm equipments though such goods are sold to them under different HSNs attracting peak rate due to certain constraints.
1. Parts of the tillers are classified under HSN Code 8432 90 90 if the same are not excluded by way of Section Notes, Chapter Notes, Heading Notes or Sub-heading Notes to the Custom Tariff Act or by any other exclusions as discussed in para 7.5.
2. The parts, components and accessories of tractors as listed in the question 2 of the application, which are either embossed with Brand name or Drawing number or exclusive Part number of the applicant and which are exclusively manufactured for the usage as inputs in the manufacture of tractors are taxable under CGST Act at 9% in terms of notification No. 19/2017- Central tax dated 18-08-2017 subject to the condition that the same are “for tractors”. Similar notification to the effect is also issued under the Karnataka Goods and Services Tax Act, 2017 taxing the same under KGST Act at 9%. The same are liable to tax under the IGST Act at 18%.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
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