GST levied on e-rickshaw tyres

GST levied on e-rickshaw tyres to be 28% : AAR

New Delhi:- GST levied on e-rickshaw tyres to be 28% under the Motor Vehicle Act, according to the order of the Authority for Advance Rulings.

The Maharashtra – bench of the Authority for Advance Rulings passed the order on an application filed by tyre-maker Ceat Ltd, seeking to clarify whether e-rickshaw can be classified under the head “three-wheeled powered cycle rickshaw”, which attracts a 5 per cent GST.

The AAR said that e-rickshaws are motor vehicles under the Motor Vehicle Act and are registered as such with the local transport authorities.

E-rickshaws doesn’t have pedal which is the pre-requisite for being classified as a ‘powered cycle rickshaw’.

“Therefore, it is very clear that e-rickshaw and powered cycle rickshaw are not one and the same but two different items. As on day and with the present GST law. it is apparent that tyres used in e-rickshaw are not tyres of powered cycle rickshaw and hence attract a peak rate of 14 per cent GST instead of 2.5 per cent as charged/paid by some manufacturers/ traders/ importers,” it said.

“The dealer’s (Ceat-Ltd) contention to consider three wheeled powered cycle rickshaws as three-wheeled electric rickshaws based on the principle of Ejusdem generis (means – of or as the same kind) can not be accepted because three-wheeled powered cycle rickshaws are different then the electric rickshaws,” the Authority for Advance Rulings said.

“seems to be unfair treatment, as they have put a poor man’s livelihood in the category of demerit items like digital cameras, motor vehicles, pan masala, tobacco, cigar, lottery, betting, gambling, or horse racing in race club” said AMRG & Associates Partner Rajat Mohan.

It is surprising to see the Rickshaw and Cycle Parts should attract zero or maximum 5% duty to make them cheaper.

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