The Maharashtra Authority for Advance Ruling (AAR) has held that the supply of garbage tipper vehicles by TATA Motor Vehicle would attract 28% of Goods and Service Tax ( GST).
The applicant ,Tata Motors who was engaged in the business of manufacturing and selling of vehicles and chassis for vehicles had intended to manufacture TATA Ace Garbage Vehicle in order to supply it to the municipal corporations, municipalities etc. It was exclusively sold to the government bodies in relation to the Swachh Bharat Mission . .
Sanjay Ekande, on behalf of the applicant submitted that the garbage tipper vehicle was exclusively for the garbage application and was not designed for carrying goods or persons. He also submitted that because of the exclusiveness of the vehicle it could be classified under subheading 8705 of special purpose vehicles. He further submitted that only 18% GST would be applicable to the said supply.
The jurisdictional officer on the other hand contended that the compactor and loading devices would not come under the said head.
The Maharashtra bench of Rama Mohan Rao and TR Ram Nani held that the vehicle manufactured by the applicant could not be termed as the special purpose vehicle and the certificate issued by the applicant itself had mentioned the vehicle as a good carrier. The bench further held that the vehicle would come under the entry of 8074 as motor vehicle for transportation of goods only and the applicant had already admitted the fact and the bench further ruled that the GST @ 28% instead of 18% rate would be applied on the garbage vehicle supply.
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