The Telangana AAR has ruled that 18% GST applicable on electrically operated vehicles.
The coram of S.V. Kasi Visweswara Rao and Sahil Inamdar said that “Electrical and Mechanical spare parts of electrical vehicles” fall under S.No 453 of Schedule-III of Notification no. 01/2017 dt:28.06.2017 i.e., “Goods which are not specified in Schedule I, II, IV, V or VI” falling in any chapter of HSN.
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The applicant would like to get clarification regarding which HSN code of electrically operated vehicles, including two & three wheeled electric vehicle and electrical & mechanical spare parts of electric vehicle.
The AAR noted that “Electrically operated vehicles” means vehicles which are 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.
The electrically operated vehicles, including two & three wheeled electric vehicle are covered under HSN code 8301 and S.No. 242A of Schedule –I of Notification No. 01/2017 dt:28.06.2017 as amended by notification 12/2019 dt:31.07.2019 with effect from 01.08.2019.