The Maharashtra Authority of Advance Ruling (AAR) presided over by members Rammohan Rao and T.R. Ramnani has held that the supply of Tata garbage tipper vehicles to Municipalities shall attract 28% GST.
The application was filed by the M/s Tata Motors Limited, engaged in the business of manufacturing and selling of vehicles, chassis of vehicles and other parts thereof, seeking advance ruling in respect of the rate of Integrated Goods and Service Tax on the Garbage Tipper Vehicles supplying to municipalities.
The applicant is planning to manufacture Tata ace Garbage Tipper vehicles and its variants which will be in supply to the municipalities, municipal corporations, Urban development bodies..etc under the Swacch Bharat Mission.
The bench observed that the applicant submitted the certificate issued by ARAI (Automotive Research Association of India) mentions in short the name of Base Model as TATA ACE GOLD PETROL BS-VI and the type of vehicle as Goods Carrier having GVW 1615 Kg”. The applicant submitted that “on going through the layout of TATA ACE GOLD PETROL CAB CHASSIS BOX TIPPER it appears that the said vehicle can be used for transportation of any goods including goods in powder form”. Here the applicant admits that it can be used for transportation of goods.
The applicant submitted that a garbage tipper vehicle would fall under Tariff Item 8705.90.00 and would attract 18% IGST.
However, the jurisdiction officer contended that the compactor and loading device do not preclude the vehicle from classification within heading 8704. The removable container body is no less a body for the transport of goods than a fixed body or dumper body on a refuse truck. Further, compacting refuse collectors are included in the kinds of motor vehicles in heading 8704.
The jurisdiction officer further submitted that “In this case, the applicant has submitted the certificate issued by ARAI showing the type of the vehicle as Goods Carrier. The chapter heading 8705 specifies special purpose vehicles, other than those principally designed for the transports or goods.
Moreover, from the above, it can be seen that the vehicle manufactured by the applicant is a goods carrier and cannot be termed as a special/ purpose vehicle as claimed by the applicant.
In the tariff heading 8705, it is clearly shown that what could be the vehicles like Breakdown Lorries, Crane Lorries, Fire fighting Vehicles, Concrete Mixer Lorries, Spraying Lorries, Mobile Workshops, Mobile Radiological Units and Tata Ace Garbage Tipper vehicle cannot be compared with them or it can be termed as a similar vehicle. “
The authority observed that the applicant agreed that the vehicle can be used for ‘transportation of goods’. The starting words of Entry 8704 are “Motor Vehicles for Transport of Goods”. Thus the rate of Integrated Goods and Services Tax shall be 28%. Only refrigerated trucks are rated as 18% and the instant vehicle is not a refrigerated type.
The bench of Maharashtra Authority of Advance Ruling held that the garbage truck shall attract the Integrated GST rate of 28%.
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