In re Shree Mohit Rameshpal Gupta (Ramesh Corporation) (GST AAR Gujarat)
Applicant Are Engaged In The Business Of Manufacturing Different Types Of Model Fuel Conversion Electronic Parts Mainly Used For Converting Vehicle From Petrol To Gas (CNG/LPG) And Vice-Versa. They Have Submitted The Details Of The Parts Manufactured By Them Along With Their Use I.E. Change Over Switch, Emulator, Timing Advance Processor And Pressure Guage.
Looking To The Use Of The Parts Of Vehicles Manufactured By The Applicant, It Can Be Concluded That The Same Fall Under HSN Code: 87089900 Only. The Same Also Appears At Sr.No.170 Of Schedule-IV Of Notification No:1/2017-Central Tax (Rate) Dated 28.06.2017 As Detailed Below On Which GST Applicable Is 28% (14% SGST + 14% CGST).
Schedule IV – 14%
| Sr.No. | Chapter /Heading/ Subheading/ Tariff Item | Description Of Goods |
| (1) | (2) | (3) |
| 170. | 8708 | Parts And Accessories Of The Motor Vehicles Of Headings 8701 To 8705 [Other Than Specified Parts Of Tractors] |
FULL TEXT OF ORDER OF BEFORE THE AUTHORITY OF ADVANCE RULING, GUJARAT
The Applicant Vide Their Application For Advance Ruling Has Submitted That They Are Engaged In The Business Of Manufacturing Different Types Of Model Fuel Conversion Electronic Parts Mainly Used For Converting Vehicle From Petrol To Gas (CNG/LPG) And Vice-Versa. They Have Submitted The Details Of The Parts Manufactured By Them Along With Their Use As Under:
(1) Change Over Switch: Change Over Switch Is Mounted On The Dashboard And Is Used To Change The Fuel From Petrol To CNG/LPG And Vice-Versa. This Switch Also Has The Facility To Start The Vehicle.
(2) Emulator: The Emulator Stops Or Cuts Off The Flow Of Petrol, When Vehicle Is Running On Gas. Emulator Is Preventing The Check Engine Light.
(3) Timing Advance Processor: Timing Advance Processors Are Electronic Control Units For Compromising The Differences Of Petrol And CNG Or LPG Combustion To Improve The Stability Of Engine When It Is Running On CNG Or LPG. It Increases The Output Work During Acceleration And Reduces.
(4) Pressure Guage: It Indicates The Pressure Of Gas (CNG/LPG) In The Tank And Also Helps Change Over Switch By Indicating Gas Level.
The Applicant Has Further Submitted That This Item-Pressure Guage Comes Under HSN Code : 9026 (Tax Rate – 18%) (Instruments And Apparatus For Measuring Or Checking The Flow, Level, Pressure Or Other Variables Of Liquids Or Gases), But The Said Item Is Installed In The CNG Car And Hence It Is An Automobile Product. Also 50% Of The Product Is Based On Mechanical Workmanship And 50% Is Based On Electronics Workmanship. The Materials Required For Manufacturing Of Above Products Consists Of PCB, Cable, Heatsshrinakable Sleev, Socket, Resistors, Diode, IC, Connector, Preset, SMD, LED, Transformer, Buck Strip, Capacitor, Transistor, Dip Switch, SMD Switch, Plastic Box Etc. The Applicant Wants To Know The HSN Code Of These Products With Tax Rate.
2. The Applicant Have Asked The Following Question On Which Advance Ruling Is Required:
(1) What Is Tax Rate Of SGST And CGST Under Goods And Service Tax Act?
(2) And Which HSN Code Will Apply?
DISCUSSION & FINDINGS
3. We Have Considered The Submissions Made By The Applicant In Their Application For Advance Ruling As Well As The Arguments/Discussions Made By Their Representative During The Course Of Personal Hearing Held On 19.03.2020. As Per Their Submission, The Applicant Are Engaged In The Business Of Manufacturing Different Types Of Model Fuel Conversion Electronic Parts Mainly Used For Converting Vehicle From Petrol To Gas (CNG/LPG) And Vice-Versa. They Have Submitted The Details Of The Parts Manufactured By Them Along With Their Use I.E. Change Over Switch, Emulator, Timing Advance Processor And Pressure Guage. The Applicant Has Also Given The Details Of The Materials Used In The Manufacture Of The Above Products And Wants To Know The HSN Code Of The Aforementioned Products/Goods With Tax Rates.
4. The Applicant Has Submitted The Details Of The Aforementioned Products And The Uses Thereof I.E. (I) Change Over Switch: Is Used To Change The Fuel From Petrol To CNG/LPG And Vice-Versa. (Ii) Emulator: Stops Or Cuts Off The Flow Of Petrol, When Vehicle Is Running On Gas And Prevents The Check Engine Light. (Iii)Timing Advance Processor Is Used For Compromising The Differences Of Petrol And CNG Or LPG Combustion To Improve The Stability Of Engine When It Is Running On CNG Or LPG. (Iv) Pressure Guage:Indicates The Pressure Of Gas (CNG/LPG) In The Tank And Also Helps Change Over Switch By Indicating Gas Level. On Reading The Same, It Can Be Seen That Such Products Can Only Form Parts Of Such Vehicles Which Can Run Alternatively Both On Petrol And CNG And These Parts Help The Engine To Switch Over/Change The Fuel From Petrol To CNG/LPG And Vice-Versa. Examples Of Such Vehicles Would Be Motor Cars, Vans, Buses Etc. Which Would Fall Under The Chapter Sub-Headings 8702 To 8704 Of The First Schedule To The Customs Tariff Act, 1975 As Listed Below:
