In an intriguing turn of events concerning the Goods and Services Tax (GST) implications for e-rickshaws, Bestway Agencies Private Limited decided to withdraw its application for an Advance Ruling (AAR) in Uttar Pradesh. This decision was influenced by a clarification issued by the Central Board of Indirect Taxes and Customs (CBIC) regarding the GST rate applicable to e-rickshaws supplied without batteries.
Background of the Application
Bestway Agencies Private Limited, based in Greater Noida, Uttar Pradesh, had initially filed an application seeking an advance ruling on whether e-rickshaws supplied by them, sans batteries, would qualify as electrically operated vehicles eligible for a 5% GST rate. This query was directed towards understanding the applicability of S. No. 242A of Notification No. 01/2017-Central Tax(rate) dated 28 June 2017.
Withdrawal of the Application
The application for an advance ruling was withdrawn by the applicant through an email dated 26.10.2023. This decision was made in light of a recent clarification by the CBIC, provided via Circular No. 179/ 11/2022-GST dated 3 August 2022.. Although the specific details of the CBIC clarification were not mentioned in the AAR withdrawal note, it is evident that the clarification addressed the applicant’s concerns regarding the GST rate for e-rickshaws.
Implications of the Withdrawal
The withdrawal of the application signifies a notable instance where a taxpayer sought to clarify tax rates applicable to specific products under the GST regime but found their answers in the broader clarifications provided by the CBIC. This scenario underscores the importance of staying updated with the latest tax circulars and clarifications issued by tax authorities, which can significantly impact business operations and compliance strategies.
The withdrawal of the AAR application by Bestway Agencies Private Limited brings to light the dynamic nature of tax regulations and the importance of central clarifications in resolving taxpayer queries. It serves as a reminder for businesses to keep abreast of regulatory updates and seek clarifications from appropriate channels to ensure compliance and make informed decisions. This instance also highlights the role of the CBIC in providing timely guidance to taxpayers, thereby facilitating a clearer understanding of tax obligations and entitlements under the GST framework.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, UTTAR PRADESH
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 & UNDER SECTION 98 (4) OF THE UPGST ACT, 2017
M/s Bestway Agencies Private Limited, having registered office at Plot No. B-28,29 Kasna Ecotech 1 Extension, Greater Noida, Gautam Budh Nagar Uttar Pradesh – 201308 (hereinafter referred as “the applicant”) having GSTIN- 09AACCB3847K2ZE, have filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 read with Rule 104 of the CGST Rules, 2017 and Section 97 of UPGST Act, 2017 read with Rule 104 of the UPGST Rules, 2017 in Form GST ARA-01 (the application form for Advance Ruling), discharging the fee of Rs. 5,000/- each under the CGST Act and the UPGST Act.
The applicant has sought advance ruling in respect of the following questions:
1) Whether e-rickshaw supplied, without battery by the applicant qualify as electrically operated vehicle for attracting 5% GST rate as per S. No. 242A of the Notification No. 01/2017-Central Tax(rate) dated 28 June 2017.
3. The applicant was granted opportunity for personal hearings on 27.10.2023, But the applicant withdrawn his AAR application vide mail dated 26.10.2023 in the light of clarification issued by the Central Board of Indirect Taxes and Customs (‘CBIC’) vide Circular No. 179/ 11/2022-GST dated 3 August 2022.
4. In view of the above discussions, application for Advance Ruling has been infructuous consequent upon withdrawal of AAR application. Hence, no ruling is gives by both the members, unanimously.