DIRECTORATE GENERAL OF GST INTELLIGENCE

WEST BLOCK – 5 WING NO. 6 2nd FlOOR

R.K. PURAM, NEW DELHI – 110 066

Phone 011-28174101, Fax 011-26102652

F.No.: 85/INT/DGCEI/HQ/2017/13269

Dated:  Dec 18 2017

To,

The Managing Director,
M/s ****************
****************
Ludhiana – 141002 (PB)

Dear Sir,

Sub: Short levy of GST on tyres and tubes meant for Three Wheeled Electric Motor Vehicle (E-Rickshaw in common parlance} under HSN code 4011 and 4013-Regarding — Reg.

Kind attention is invited to the subject cited above.

2. This This office has reliably learnt that your company is short levying GST@5 percent on Tyres and Tubes for the use in E-Rickshaw for the sizes 300-12, 300-14, 90-90-12 and 3.75-12 by way of clewing the same in the guise of Tyres and Tubes of Three Wheeled Powered Cycle Rickshaw. As the Tyres and Tubes supplied by you are not meant for use in bicycle. cycle-rickithaw or powered cycle rickshaw, these attract GST rates as under:

S.No. Description of Goods Chapter / Heading / sub-heading / tariff itame GST Rate (%)
Prior to 15th
Nov, 2017
w.e.f 15th I Nov, 2017
1 New pneumatic tyres, of rubber (other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyres) 4011 28 28
2 Inner tubes of rubber [other  than of a kind used on / in  bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyres tubes] 4013 28 18

3. The definition of powered cycle rickshaw as per Central Excise Tariff is as under:

“Powered Cycle or Powered Cycle Rickshaw means a mechanically propelled cycle or as the case may be mechanically propelled cycle rickshaw, which may also be paddled, If any necessity arises for so doing. The meaning of cycle and cycle rickshaw will be the same as used in common parlance.”

4. From the above. it is clear that E-rickshaw and Cycle-ricks Powered cycle rickshaw are two distinct commodities altogether and therefor  E-Rickshaw Tyres and Tubes attract GST as tabulated supra. The GST rates presently charged by your company is applicable to Tyres and Tubes of Cycle-Rickshaw oP Powered Cycle Rickshaw which is not the case with your company.

5. In view of the above, since you are a responsible corporate entity, and are obliged to assess and pay your taxes properly and correctly. it is requested that 28% GST may be charged on supplies of Tyres and 18% GST ctrl Tubes in question under HSN 4011 and 4013 respectively. This is irnper Live}} since rnis-declaration of the product and short payment of GST will hamper the Nation’s growth and defeat the objective of “One Nation One Tax” meant to be achieved through GST.

6. You are further requested to please ascertain the differential GST short paid on these supplies and deposit the same in the Government Exchequer. A compliance report may please be sent to this office at the earliest. For any clarification in this matter, the undersigned may be contacted either in person or telephonically.

your sincerely

(Praveen Kumar)

Deputy Director (Int.)

(Tele No. 011-26174191)

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