TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Motor Vehicle Seats Taxed at 28% GST Under Entry 210A, Parts Taxed at 18% Under Entry 435A</h1> <h3>In Re: Sri. Gubbi Rajashekarappa Mahesh, Prop. M/s. Macho Engineering Industries.</h3> In Re: Sri. Gubbi Rajashekarappa Mahesh, Prop. M/s. Macho Engineering Industries. - TMI ISSUES: Whether the goods described as 'parts of seats of a kind used for motor vehicles' are classifiable under tariff heading 9401 and the applicable GST rate thereon.Interpretation of amended entries in Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, specifically entries 435A (Schedule III) and 210A (Schedule IV) concerning seats and parts thereof used for motor vehicles.Determination of the correct GST rate applicable on parts of seats of a kind used for motor vehicles after amendments effective from 10-10-2024. RULINGS / HOLDINGS: The parts of seats of a kind used for motor vehicles are classifiable under Tariff heading 9401, specifically under Tariff Heading 9401 90 00.'Seats of a kind used for motor vehicles' are covered under entry number 210A of Schedule IV to the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended, and attract GST @ 28%.The parts thereof are covered under entry number 435A of Schedule III to the said Notification and attract GST @ 18%.The amended entry 435A excludes 'seats of a kind used for motor vehicles' but retains 'parts thereof,' thereby distinguishing the taxation rates for seats and their parts. RATIONALE: The classification was determined by applying the rules for interpretation of the First Schedule to the Customs Tariff Act, 1975, including Section and Chapter Notes, and the General Explanatory Notes, as mandated by Explanation (iv) to Notification No. 01/2017-Central Tax (Rate), dated 28.06.2017.Reference was made to Chapter 94 of the Customs Tariff covering furniture and parts thereof, with Tariff heading 9401 covering seats and parts thereof, and specifically heading 9401 20 00 covering seats of a kind used for motor vehicles.The amendments vide Notification No. 05/2024-Central Tax (Rate), dated 08-10-2024, carved out a separate entry (210A) for 'Seats of a kind used for motor vehicles' attracting 28% GST, while the earlier entry 435A was amended to exclude these seats but continue to cover their parts, attracting 18% GST.Circular No. 235/29/2024-GST dated 11.10.2024 was relied upon to clarify the classification and applicable GST rates on seats and parts thereof used for motor vehicles.The ruling aligns with the principle that classification and GST rates must follow the notified schedules and entries as amended, respecting the explicit exclusion and inclusion language in the tariff entries.
TaxTMI 
TaxTMI 
