Classification of the three-wheeled electrically operated motor vehicle under GST

Last updated: 17 August 2020

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Quick Summary

This ruling clarifies the Goods and Services Tax (GST) classification for three-wheeled electrically operated motor vehicles, commonly known as 'Totos' or e-rickshaws. The West Bengal Authority for Advance Ruling determined that these vehicles are classified under HSN 8703 as electrically operated vehicles when supplied with a battery pack. However, if supplied without the battery pack, they are classified under HSN 8706 as chassis fitted with an engine.

Court :
West Bengal Appellate Authority for Advance Ruling

Brief :
A combined reading of the provisions of section 2A (2) of the MV Act and Entry No. 242A of Schedule I of the Rate Notification establishes that the battery pack is an essential character of an e-rickshaw. An electrically operated three-wheeled vehicle is run entirely on electrical energy, derived from an external source or one or more electrical batteries fitted to such vehicles. If the battery pack is withdrawn, it will no longer be a three-wheeled electrically operated vehicle.

Citation :
06/WBAAR/2020-21 dated 10/08/2020

Daily Limit Reached