The Customs Authority of Advance Ruling (AAR), Mumbai ruled that 12% GST on Audio Receiver or Transceiver and Amplifier.
The application was moved by the Amazon Seller Services Pvt. Ltd. seeking the advance ruling in respect of GST on various devices namely Audio Receiver (Echo Link), Audio Transceiver & Amplifier, Media Transmission Device, Echo Flex.
The Coram of M.R.Monunry observed that all the four Echo family devices are voice command devices with multiple functions, including answering questions, playing music, reading newspaper/audio books, providing traffic, weather, and other real-time information, and controlling smart devices. These devices respond to the names “Alexa”, “Amazon”, “Computer” or “Echo” as wake-up words. These Echo family devices are capable of voice interaction, music playback, making to-do lists, setting alarms, etc.
The AAR ruled that all these four devices merit classification under sub-heading 85176290.
“Besides, I also find that the Sr. No. 20 of the Notification No. 57/2017-Cus., dated 30.06.2017; as amended, extends the benefit of concessional rate of duty to goods falling under sub-headings 85176290 and 85176990 subject to listed exclusions. In the list of exclusions fall MIMO devices. The specifications of Echo Auto and Echo Flex, as submitted by the applicant make it clear that they are not MIMO products. In view of this, I hold that these two devices would be eligible for the said exemption. Since Echo Link and Echo Link Amp are MIMO products, they are not eligible for the subject exemption. During the hearing held on 28.09.2021, the applicant has fairly conceded that they no longer are seeking exemption in respect of these two devices,” the AAR added.
The AAR held that Audio Receiver (Echo Link) having model no. SXP16E, Audio Transceiver and Amplifier (Echo Link Amp) having model no. K9Y29E, Media Transmission Device (Echo Auto) having model no. BP39CN, and Echo Flex having model no. C77A68 merit classification under sub-heading 85176290 of the first schedule to the Customs Tariff Act, 1975; and also that the devices Echo Auto and Echo Flex are eligible for exemption extended under the Notification No. 57/2017-Cus., dated 30.06.2017; as amended.
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