In re Navbharat Imports (GST AAAR Tamilnadu)
The appellants stated that they are regular importers and traders of toys from various countries, that they sell these goods in India, in retail as well as through E-Commerce platforms. They added that they also intend to manufacture these toys in India in future, that the toys proposed to be imported include both electronically operated toys as well as manually operated toys in which electronic parts were fitted for providing light, music and horn etc.
The Appellant had sought Advance Ruling on the following questions: When physical force is the primary action of a Toy and if the light and the music are ancillary to it then whether it is to be classified under “Electronic Toys” or “other than Electronic Toys”?
AR pronounced the following rulings and against that Appellant filed Appeal with AAAR:
The products Children Scooter ,Activity Ride-on , Smart Tricycle and Kick Scooter, in which physical force is the primary action and contains an in built electronic circuit, are “Electronic Toys” and the applicable GST Rate is CGST @9% as per serial number 440 of Schedule-Ill of Notification No. 01/2017-CT (Rate) dated 28.06.2017 and SGST @9% as per Sl.no.440 of Schedule-Ill to Notification No. II(2)/CTR/532 (d-4)/2017 Vide G.O.Ms No.62 dated 29.06.2017.
Let us examine the entries relating to electronic toys and toys other than electronic under the GST Act are as follows:
