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2019 (3) TMI 838 - AAR - GSTClassification of goods - rate of GST - various equipment manufactured for being used exclusively in various Tanks - Held that - As per chapter heading sub-heading 8710, it is found that it determines the rate of GST leviable @ 12% on the goods namely Tanks and other armoured fighting vehicles, motorized, whether or not fitted with weapons, and parts of such vehicles , which is not the subject goods manufactured and repaired by the said applicant. The said products i.e. Sight Vision Equipment , manufactured and repaired by the applicant for exclusive use in various types of Armoured Tanks, will be classified under HSN code 9013 of the GST tariff - the various products manufactured and repaired by the applicant i.e. Sight Vision Equipments being exclusively used in armoured tanks, will be classified as an optical instruments under HSN code 9013 and as per relevant chapter sub-heading 90131090, supply of these products will attract GST @ 18% as on date.
Issues:
Classification and Rate of applicable GST on various equipment manufactured for being used exclusively in various Tanks. Analysis: The application under Sub-Section (1) of Section 97 of the CGST / SGST Act, 2017 was filed by a company seeking an advance ruling on the classification and GST rate applicable to equipment exclusively used in tanks. The applicant sought clarification on the leviability of GST on the mentioned equipment. The Advance Ruling Authority admitted the application based on Section 97(2)(a) & 97(2)(e) of the CGST/SGST Act, 2017. The applicant, engaged in manufacturing and repairing 'Sight Vision Equipment' for tanks, had been classifying the products under CETH 8710 0000 and paying Central Excise duty. With the advent of GST, the classification continued under HSN 8710 with a GST rate of 28%, later reduced to 12% and then to 18%. However, the Authority noted that the products were misclassified as parts of armoured vehicles (tanks) under chapter 87 of the GST tariff. Upon detailed examination, it was found that the 'Sight Vision Equipment' constituted optical instruments falling under Chapter 90 of the GST Tariff Act. Specifically, the products were classified under HSN code 9013, attracting a GST rate of 18%. The ruling clarified that the equipment manufactured for exclusive use in armoured tanks would be classified under HSN code 9013, and the supply of such equipment would be subject to GST at the rate of 18% (CGST @ 9% + SGST @ 9%). Therefore, the Authority ruled that the 'Sight Vision Equipments' manufactured and repaired by the applicant for use in armoured tanks would be classified under HSN code 9013, attracting GST at the rate of 18%.
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