GST Classification: Geared Motors under CTH 8501, CGST/SGST Rate 9%, Scope of Authority Questioned

The geared motors were classified under CTH 8501 for GST purposes, as they integrate a gear reducer with an electric motor, converting electrical energy to mechanical energy. The question of considering geared motors as gears and gearings was deemed outside the authority's scope and remained unanswered. The applicable rate of CGST/SGST for geared motors was determined to be 9% each based on the classification under CTH 8501.

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Issues Involved:
1. Classification of geared motor under GST: whether under 8501 or 8483.
2. Consideration of geared motor as gears and gearings.
3. Applicable rate of CGST/SGST for geared motor.

Detailed Analysis:

Issue 1: Classification of Geared Motor under GST
The applicant, M/s Rossi Gear Motors India Private Limited, sought clarification on whether the geared motor should be classified under heading 8501 or 8483 for GST purposes. The applicant argued that the principal function of the geared motor is the transmission of power by changing speed and torque, which aligns with the function of a gearbox (8483). However, the ruling noted that the Explanatory Notes to 8483 exclude gearboxes combined with a motor, stating they should be classified under the same heading as the motor (8501). The geared motor integrates a gear reducer with an electric motor, thus performing the principal function of converting electrical energy to mechanical energy. Consequently, the ruling determined that the geared motor should be classified under CTH 8501.

Issue 2: Consideration of Geared Motor as Gears and Gearings
The applicant posed whether the geared motor could be considered as gears and gearings. The ruling found that the question did not fit within the scope of issues that the Advance Ruling Authority is authorized to address under Section 97(2) of the CGST Act / Tamil Nadu GST Act. Therefore, this question was not answered.

Issue 3: Applicable Rate of CGST/SGST for Geared Motor
The applicant sought to determine the applicable rate of CGST/SGST for the geared motor. Based on the classification under CTH 8501, the ruling referred to Sl. No. 372 of Schedule III of Notification No. 1/2017-C.T. (Rate), dated 28-6-2017, which specifies a 9% CGST/SGST rate for electric motors and generators (excluding generating sets). Therefore, the applicable rate of CGST/SGST for the geared motor is 9% each.

Ruling:
1. The 'Gear Motors' supplied by the applicant are to be classified under CTH 8501.
2. The question of whether the gear motors can be considered as gears and gearings is not answered as it is not within the purview of Section 97(2) of the Act.
3. The rate of CGST/SGST applicable on the 'Gear Motors' is 9% CGST and 9% SGST as per Sl. No. 372 of Schedule III of Notification No. 1/2017-C.T. (Rate), dated 28-6-2017.

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