The Intelligence wing of the Goods and Services Tax (GST) department, New Delhi issued a notice to a Company registered under GST for declaring Tyres and Tubes used in E-Rikshaw under the category of Tyres and Tubes meant for use in bicycle, cycle rikshaw or powered cycle rikshaw and paying five per cent tax on electronic rikshaws.
In the notice issued this month, the Deputy Director (Int.) said that the above items would attract 28 per cent and 18 per cent GST since the Tyre and Tubes used n E-Rikshaw are not meant for use in bicycle, cycle rikshaw or powered cycle rikshaw.
As per the notice, new pneumatic tyres of rubber lother than of a kind used on/in bicycles, cycle rikshaws and three wheeled powered cycle rikshaws and rear tractor tyres would attract higher rate of 28 per cent under the current GST regime.
It was further said that inner tubes of rubber lother than of a kind used on/in bicycles, cycle rikshaws and three-wheeled powered cycle rikshaws and rear tractor tyres tubes would attract 28 per cent GST till November 15th 2017 and 18 per cent for the subsequent period.
It clarifies that E-rikshaws and cycle rikshaw or powered cycle rikshaws are two distinct commodities altogether and therefore, higher tax is applicable to the former.
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