In re EVM Passenger Cars India Pvt Ltd (GST AAR Kerala)
Summary : The applicant, a private limited company operating under the name EVM Passenger Cars India Pvt. Ltd., provides self-drive “Rent a Cab” services through its division, EVM Wheels. Vehicles are supplied without a driver and only for personal use, with restrictions prohibiting commercial, hire, or taxi operations. Customers arrange their own fuel and must return the vehicle with the same fuel level. The vehicles are GPS-enabled for monitoring location, speed, fuel level, tyre pressure, and driver behaviour, and the system detects unauthorised use, tampering, and movement outside permitted areas, with the capability for remote immobilization. The applicant submitted that these controls ensure it retains possession and effective control of the vehicles at all times.
The applicant stated that it had previously classified its service under SAC 996601 for “rental services of transport vehicles,” which, before 1 October 2019, covered both rentals with and without operator. The applicant noted that Notification No. 20/2019 amended Heading 9966 to cover only rental services “with operator,” thereby excluding self-drive rentals. The applicant relied on the explanatory notes to submit that after this amendment, the service falls under Heading 9973, which covers leasing or rental services without operator. Within this heading, the applicant argued that its service qualifies under 9973(viii), applying an 18% GST rate, because there is no transfer of the right to use the goods due to the absence of possession or effective control being transferred to the customer.
