2020 (5) TMI 580

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....86 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 and the KGST Act. 2. The applicant is a proprietary concern registered under the provisions of the Goods and Services Act, 2017. The applicant states that he is engaged in the business of supplying two wheelers. 3. The applicant has sought advance ruling in respect of the following questions: Whether he can bill the scooter at 5% GST under HSN 8713 along with retro-fitment and it shall not restrict any input tax credit on purchase of vehicle under HSN 8711 at 28% GST 4. The applicant furnishes some facts relevant to the stated activity. a. The applicant states th....

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....t the Cars for physically handicapped persons under HSN 8703 are given special treatment subject to conditions and the two wheelers require more facility for specially abled compared to Motor Car. PERSONAL HEARING: / PROCEEDINGS HELD ON 20.02.2020 6. Sri Harish. S., Chartered Accountant and duly authorised representative of the applicant appeared for personal hearing proceedings on 20.02.2020 before this authority and reiterated the facts. 7. DISCUSSION & FINDINGS 7.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by him when he appeared for the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the ....

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.... or not. Thus, we proceed to examine the classification of the said product i.e. Retrofitted two-wheeler. We draw attention to the Chapter Heading 8713 which reads as under: 8713 Carriages for disabled persons, whether or not motorized or otherwise mechanically propelled 871310 - Not mechanically propelled 87131010 --- Wheel chairs for invalid 87131090 --- Other 871390 - Other 87139010 --- Wheel chairs for invalid 87139090 --- Other 7.5 In view of the above, it could easily be inferred that the impugned product has to be a "Carriage for disable person" so as to get classified under heading 8713 & to attract 5% of GST. 7.4 In the instant case, it is an admitted fact that the applicant purchases....

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....g 8711 20 19 only. 7.7 The next issue before us to decide is whether the tax paid on two wheelers and retrofit equipment is available to the applicant as input tax credit or not. In the instant case the two-wheeler is purchased and is retrofitted with accessories to supply as retrofitted vehicle under heading 8711 20 19. We draw attention to Section 17(5) of the CGST Act 2017, which is relevant and reads as under: "(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (includin....