GST Rate applicable on
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Case Title |
Navbharat Imports vs Appellate Authority |
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Court |
Madras High Court |
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Honorable Judges |
Justice M.V.S Choudhary |
|
Citation |
2022 (1) GSTPanacea 372 HC Madras TN/AAAR/01/2022(AR) |
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Judgement Date |
13-January-2022 |
|
Council for Petitioner |
Mr S Murugappan |
|
Council for Respondent |
Mr K Phanindra Reddy |
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In favour of |
Assessee |
|
Section |
Schedule-Ill of Notification No. 01/2017-CT (Rate) dated 28.06.2017 |
The Appellate Authority for Advance Ruling, Tamil Nadu bench of Member M.V.S Choudhary, came to the conclusion that the goods of the appellate are classifiable under serial number 440 of schedule III to the Notification No. 1/2017 Central Tax Rate dated 28-6-2017 Notification No. 1/2017 Central Tax Rate dated 28-6-2017, which we hold that no interference is warranted and accordingly the appeal fails.
Facts of the Case
The appellants stated that they are regular importers and traders of toys from various countries, that they sell these goods in India, in retail as well as through E-Commerce platforms. They added that they also intend to manufacture these toys in India in future, that the toys proposed to be imported include both electronically operated toys as well as manually operated toys in which electronic parts were fitted for providing light, music and horn etc. The Appellant had sought Advance Ruling on the following questions: When physical force is the primary action of a Toy and if the light and the music are ancillary to it then whether it is to be classified under “Electronic Toys” or “other than Electronic Toys”?
GST Rate applicable on
Court Held
AR pronounced the following rulings and against that Appellant filed Appeal with AAAR: The products Children Scooter ,Activity Ride-on , Smart Tricycle and Kick Scooter, in which physical force is the primary action and contains an in built electronic circuit, are “Electronic Toys” and the applicable GST Rate is CGST @9% as per serial number 440 of Schedule-Ill of Notification No. 01/2017-CT (Rate) dated 28.06.2017 and SGST @9% as per Sl.no.440 of Schedule-Ill to Notification No. II(2)/CTR/532 (d-4)/2017 Vide G.O.Ms No.62 dated 29.06.2017. Let us examine the entries relating to electronic toys and toys other than electronic under the GST Act are as follows:
Sl No | HSN | Description | Rate |
228 | 9503 | Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) [other than electronic toys] | 6% + 6% |
440 | 9504 | Electronic Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) | 9% + 9% |
As seen from the above entries, both entries are same except for the term ‘electronic’. Had the Parliament thought that the electronic toys are altogether different from that of toys, it would not add the same list of tricycles, scooters, pedal cars etc. (including parts and accessories thereof) and the difference between them is that any component of electronic added to the toys like tricycles, scooters, pedal cars etc. would disentitle them to fall under serial number 228 of schedule II to the Notification No. 1/2017 Central Tax Rate dated 28-6-2017. In the case of appellants, it is apparently clear that all the four products contain electronic components irrespective of its usage, the said goods would fail to fall under serial number 228 of schedule II to the Notification No. 1/2017 Central Tax Rate dated 28-6-2017 Notification No. 1/2017 Central Tax Rate dated 28-6-2017 and therefore they have to be classified under serial number 440 of schedule III to the Notification No. 1/2017 Central Tax Rate dated 28-6-2017. The Advance Ruling Authority has with the aid of standard applicable for tools have also came to the conclusion that the goods of the appellate are classifiable under serial number 440 of schedule III to the Notification No. 1/2017 Central Tax Rate dated 28-6-2017Notification No. 1/2017 Central Tax Rate dated 28-6-2017, which we hold that no interference is warranted and accordingly the appeal fails.
GST Rate applicable on
Analysis of the Judgement
As per the above case we analyse that 18% GST applicable on Electronic Toys as against 12% on other Toys.
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