Court :
AAR, Karnataka
Brief :
The AAR, Karnataka in the matter of M/s KNK Karts (P) Ltd [Advance Ruling No. KAR ADRG 20/2022 dated August 12,2022] has held that the amusement park ride karts ("the Product") cannot be classified as Motor Vehicle and will attract GST @ 18% under HSN 9503 of the Customs Tariff Act, 1975 ("the Customs Tariff Act").
Citation :
Advance Ruling No. KAR ADRG 20/2022 dated August 12,2022
The AAR, Karnataka in the matter of M/s KNK Karts (P) Ltd [Advance Ruling No. KAR ADRG 20/2022 dated August 12,2022] has held that the amusement park ride karts ("the Product") cannot be classified as Motor Vehicle and will attract GST @ 18% under HSN 9503 of the Customs Tariff Act, 1975 ("the Customs Tariff Act").
M/s KNK Karts ("the Applicant") has manufactured amusement park ride karts ("the Product") and supply them for joy riding both for children and adults. The Product was neither roadworthy nor meant for transportation or carrying of passengers. The Automotive Research Association of India, an authority established to certify that the Product is not permitted on public roads and are not fit for certification and hence cannot be registered with the Regional Transport Authority ("the RTO") as Motor vehicle. The Applicant were of the impression that the Product are classified under HSN 9503 of the Custom Tariff Act whereas the Central Excise Department insisted them to classify the Product under HSN 8703 of the CustomTarrifAct and pay GSTat the rate of 28% in terms of Notification No.1/2017-Central Tax -Rate dated June 28, 2017.
The AAR, KarnatakainAdvance Ruling No. KAR ADRG 20/2022 dated August 12, 2022has held as under:
S.No. |
Chapter/ Heading / Sub-heading / Tariff item |
Description of Goods |
441A |
9508 |
Travelling Circuses and Travelling Menageries; Amusement Park Rides and Water Park Amusements; Fairground Amusements, including Shooting Galleries; Travelling Theatres |
Tariff Item |
Description of Goods |
8703 |
Motor cars and other motor vehicles principally designed for the transport of persons (Other than those of heading 8702), including station wagons and racing cars |
870310 |
-Vehicles specially designed for travelling on snow; golf cars and similar vehicles: |
87031010 |
--- Electrically operated |
87031090 |
--- Other |
Chapter Note 6. For the purposes of heading 95.08:
(a) The expression "amusement park rides" means a device or combination of devices or equipment that carry, convey, or direct a person or persons over or through a fixed or restricted course, including watercourses, or within a defined area for the primary purposes of amusement or entertainment. Such rides may be combined within an amusement park, theme park, water park or fairground. These amusement park rides do not include equipment of a kind commonly installed in residences or playgrounds.
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