9911796707
TMI Blog2020 (10) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... 17 85 KGST Act, 2017 read with Rule 104 of CGST Rules 2017 86 KGST Rules 2017, in form GST ARA-01, discharging the fee of Rs. 5,000/- each under the CGST Act 2017 and the KGST Act 2017. 2. The Applicant is engaged in renting of vehicles like e-bikes (Miracle), bicycles (Move) in Bengaluru, Karnataka through a technology driven mobility platform. They enter into contract/agreement with the customers with regard to usage / renting of the e-bikes (Miracle), bicycles (Move) and charge based on the time of usage of such vehicles. Representative sample agreements/terms are enclosed along with the application for perusal and records. 3. The applicant currently is charging GST @ 18% in respect of the following services. Sl.No. Name of Scheme D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the customers with regard to usage / renting of the e-bikes (Miracle), bicycles (Move) provided by the applicant and charges based on the of time of usage of such vehicles. 6.2 It is imperative that the classification of the services has to be looked into and appropriate rate of tax has to be discharged as notified under section 9 of CGST / Karnataka GST (herein referred as KGST) Act, 2017. Further, for determining the rate of tax, determination of appropriate classification becomes critical. Accordingly, reference has to be made to the provisions of Section 9 of CGST / KGST Act, 2017. 6.3 The Government has notified the rate of GST for supply of services, vide Notification No.11/2017 C.T(R) dated 28th June 2017 as amended, and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices of transport vehicles with operators" and heading 9973 covers "Leasing or rental services without operator". 6.6 The applicant, by virtue of such amendment, is eligible to shift his classification of supply of services from HSN 9966 to HSN 9973 due to following reasons - a. The applicant rents out its' vehicles without operator. b. The heading 9973 includes rental or operational leasing of machinery and equipment and personal and household goods, without operator. c. Leasing of vehicles can also be covered under this heading by virtue of entry 997319 Leasing or rental services concerning other machinery and equipment without operator which includes i. "leasing, renting or hiring services concerning all kinds of machinery, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) dated 28th June 2017 as amended. The relevant classification details of our products which are being rented are provided below for your ready reference - For Scheme - Miracle Schedule I - 2.5% Sl.No. Chapter/Heading/ Sub-heading/Tariff Item Description of Goods Amended Notification 242A 87 Electrically operated vehicles, including two and three wheeled electric vehicles. Explanation. For the purposes of this entry, "Electrically operated vehicles" means vehicles which are run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and shall include E- bicycles."; Notification No. 12/2019-C.T. (R) dated 31st July 2019 For Scheme - Move Schedule II - 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same provisions under the KGST Act. 8.3 The applicant sought advance ruling in respect of the question mentioned at para 4 supra, related to the classification of their services. It is observed, from the applicant's interpretation of law, that the applicant construed the amendment to the rate notification under Notification No. 20/2019-CT(R) dated 30.09.2019 as that of the amendment to the classification, which is incorrect. The classification of the services does not change but the rate of tax can be changed by the rate notification. 8.4 Now we proceed to decide the classification of the impugned service of the applicant. i.e. renting of vehicles. It is an admitted fact that the applicant is involved in renting of e-bikes (Miracle) & bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered under SAC 9966. The specific description is preferred to general one as per the Explanatory Notes and hence we conclude that applicant's activity is classifiable under Heading 9966. 8.7 Applicant's interpretation that post 30th Sept 2019, renting/leasing of all goods without operator should be falling under Heading 9973 is not correct and hence is not tenable under the law, for the reason that the so called amendment, under Notification No. 20/2019-C.T.(R) dated 30.09.2019, is to the rate of GST for the services covered under SAC 9973, but not to the classification of the services. Further the amendment under Notification No. 20/2019-CT (R) dated 30.09.2019 amends entry bearing SI.No.17, covering the services classified under SAC 9973 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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