TaxTMI 
TaxTMI 
2026 (9) TMI 1265
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....s, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like manner except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the above, henceforth, for the purposes of these proceedings, the expression "GST Act" would mean both the CGST Act and the WBGST Act. 1.2 The applicant, Jaidka Power Systems Private Limited, is engaged in the manufacture of various types of electrically operated vehicles, including E-Rickshaw commonly known as "TOTO", E-Scooter, E-Cart and Ecovat Hydraulic. In the course of manufacture, the applicant procures various raw materials, accessories and batteries both through imports on payment of IGST and from domestic registered suppliers on payment of applicable GST and avails input tax credit thereon. The applicant claims refund of accumulated input tax credit arising on account ....
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.... any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 1.5 In our view, the question placed under serial no. 1 is covered by clause (a) of Section 97(2). But the question placed under serial no. 2 is not covered by any of the clauses of the said section. The applicant's representative has been informed of our view. 1.6 The applicant states that the question raised in the application has neither been decided by nor is pending before any authority under any provision of the GST Act. 1.7 The officer concerned from the Revenue has raised no objection to the admission of the application. 1.8 The first question raised in the application is admitted and the other question is not admitted. 2. Submission of the Applicant 2.1 The Applicant submits that it is a registered taxable person engaged in the manufacture of various types of electric vehicles, namely E-Rickshaw commonly known as 'TOTO', E-Scooter, E-Cart and Ecovat Hydraulic. To manufacture these electric vehicles, the Applicant uses various types of raw materials, accessories, and batteries, which are procured either by way of imports from outs....
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....he explanation to entry 242A of Schedule I of Notification No. 1/2017-Central Tax (Rate), the expression 'Electrically operated vehicles' covers vehicles which run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and includes E-bicycles. The Applicant submits that the said definition makes it evident that an electrically operated vehicle is one which runs solely on electrical energy derived from an external source or from electrical batteries. Therefore, the physical fitting of the battery to the vehicle at the time of supply cannot be considered to be a concomitant factor for determining whether a vehicle qualifies as an electrically operated vehicle. 2.5 The Applicant further submits that the HSN Explanatory Notes issued by the World Customs Organization also do not consider the battery to be a component whose absence would change the essential character of an incomplete, unfinished or unassembled vehicle. The Applicant also draws attention to the HSN Explanatory Notes relating to Chapter 87, which provide that motor chassis fitted with cabs fall under headings 87.02 to 87.04 and not under heading....
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....nly difference between electric vehicles supplied with batteries and those supplied without batteries was the absence of the battery in the latter. Otherwise, the vehicles were complete in themselves to function as means of transportation propelled by an electric motor. It was therefore submitted that fitting of the battery could not be considered a concomitant factor for determining whether the vehicle is a battery-powered or electrically operated vehicle. 2.12 The Applicant submits that the Department, in the said proceedings, also contended that even without the battery, an E-Rickshaw having a motor fitted on a chassis along with the body and being capable of transporting persons retains its original character as a vehicle. The absence of the battery does not by itself convert the E-Rickshaw into a mere chassis. 2.13 The Applicant submits that the Authority for Advance Rulings, Odisha, after considering the definition of electrically operated vehicles, observed that an electrically operated vehicle exclusively uses electrical energy stored in rechargeable battery packs and has no secondary source of propulsion such as a hydrogen fuel cell or internal combustion engine. The....
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....evenue has not given any view in respect of the issues raised in the application for advance ruling. 4.2 As per the facts submitted before us, the applicant is a manufacturer of various types of e-vehicle, i.e. e-rickshaw commonly known as 'TOTO', e-scooter, e-cart, ecovat hydraulic by using various types of raw materials, accessories and battery etc., procured by importing from outside of India on payment of IGST and also by making inward supplies from various RTP under the Act, paying due tax of IGST, CGST & SGST at applicable rate. 4.3 Under these circumstances, the applicant has placed the following question before this authority: Question 1: Whether goods under description of e-rickshaw, e-scooter, e-cart, ecovat hydraulic - all low cost battery operated two or three wheeler vehicles sold with or without battery attachment are classifiable under HSN 8703 and 8711 and are taxable @5% GST? Question 2: Whether the applicant is entitled to claim refund of accumulated ITC due to inverted tax structure under Section 54(3) (ii) of the CGST Act, 2017? 4.4 In Paragraph 1.5 supra, we have discussed the reason for admitting only question No. 1 out of the two qu....
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....A of Schedule I of notification No. 1/2017-Central Tax (Rate). The applicant's representative draws our attention to the ruling pronounced by Odisha Advance Ruling Authority in the case of Anjali Enterprises. The question placed before the said authority was "Whether fitting of battery is mandatory in two & three-wheeled battery powered electric vehicles (here-in-after referred to as 'the subject goods') while selling the same to the dealers for getting the benefit of 5% GST rate applicable for electrically operated vehicles ?" In their ruling, the authority defined electrically operated vehicles as those "vehicles which run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles and shall include e-bicycles". That means it is a type of Electric Vehicle (EV) that exclusively uses chemical energy stored in rechargeable battery packs, with no secondary source of propulsion (e.g. hydrogen fuel cell, internal combustion engine, etc.). An Electric Vehicle with battery pack uses electric motors and motor controllers instead of Internal Combustion Engines (ICEs) for propulsion. It derives all power from batter....
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.... With effect from 07.01.2015 e-cart and e-rickshaw has been brought into the ambit of the Motor Vehicles Act, 1988. Section 2A has been added to the Act, which provides as under: Section 2A. e-cart and e-rickshaw.-(1) Save as otherwise provided in the proviso to sub-section (1) of section 7 and sub-section (10) of section 9, the provisions of this Act shall apply to e-cart and e-rickshaw. (2) For the purposes of this section, "e-cart or e-rickshaw" means a special purpose battery powered vehicle of power not exceeding 4000 watts, having three wheels for carrying goods or passengers, as the case may be, for hire or reward, manufactured, constructed or adapted, equipped and maintained in accordance with such specifications, as may be prescribed in this behalf. The above-noted three-wheeled vehicles are included in e-cart or e-rickshaw. For the first limb of the question, let us refer to the relevant portions of the First Schedule to the Customs Tariff Act, 1975. Chapter 87 of Section XVII of the Schedule refers to 'Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof'. Tariff heading 8703 refers to motor cars and other mot....
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....icles (HEVs): The vehicle uses both the internal combustion (usually petrol) engine and the battery-powered motor powertrain. The petrol engine is used both to drive and charge when the battery is empty. C) Plug-in Hybrid Electric Vehicles (PHEVs): These vehicles use both an internal combustion engine and a battery charged from an external socket (they have a plug). This means the vehicle's battery can be charged with electricity rather than the engine. D) Fuel Cell Electric Vehicles (FCEVs): They employ 'fuel cell technology' to generate the electricity required to run the vehicle. The chemical energy of the fuel is converted directly into electric energy. In the present application, we are concerned with BEVs. According to the information on the above-noted website, BEVs convert DC battery power to AC for the electric motor. As the accelerator is pressed, a signal is sent to the controller. The controller adjusts the vehicle speed by changing the frequency of the AC power from the inverter to the motor. The motor then connects and leads to the turning of the wheels through a cog. If the brakes are pressed, or the electric car is decelerating, the motor become....
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....ery powered road vehicles' and would run on battery when put to use. Hence, we hold that fitting of battery in the vehicle, at or before the time of supply, is not a pre-condition for the same to be classified as electrically operated vehicle". In all the above cases, it was ruled that an electrically operated vehicle, commonly known as an e-rickshaw, when supplied without a battery, is also classifiable as an "electrically operated motor vehicle' under tariff heading 8703. The ratio of the rulings can be applied to e-scooter as well. Moreover, there has been a circular bearing No. 179/11/2022-GST dated 03.08.2022 issued by CBIC. The relevant portion of the circular is reproduced as under: 2. Electric vehicles whether or not fitted with a battery pack, attract GST rate of 5%: 2.1. Representations have been received seeking clarification regarding the applicable rate of GST on electrically operated vehicle without any battery fitted to it. 2.2. The explanation of 'Electrically operated vehicles' in entry 242A of Schedule I of notification No. 1/2017-Central Tax (Rate) reads as: 'Electrically operated vehicles which run solely on electrical energy....