18% GST Applicable on Rent of E-bikes & Bicycles without an Operator

The Karnataka Authority of Advance Ruling (AAR) announces that it is taxed at the rate of 5% and 12% hiring e-bikes and bicycles for rent without an operator.

The Applicant, Yulu Bikes Pvt. Ltd. has the business of renting vehicles like e-bikes (Miracle), bicycles (Move) in Bengaluru, Karnataka through a technical versatility platform

Under the SAC 9973-Leasing or rental assistance without operator Sl.No.17 (via) of Central Tax (Rate) Notification No.11/2017 on 28th June-2017 as changed. The petitioner asked the advance ruling on the matter of whether the renting of e-bikes (Miracle), bicycles (Move) without the operator can be assigned.

“Thus, the applicant’s services are squarely covered under SAC 9966. The specific description is preferred to the general one as per the Explanatory Notes and hence we conclude that the applicant’s activity is classifiable under Heading 9966,”

The Authority of Advance Ruling (AAR) Get to know about AAR (Authority for Advance Rulings) under GST India along with its mechanism. Also, we have described its objectives, powers, orders, etc consisting of Dr M.P. Ravi Prasad and Mashood ur Rehman Farooqui asked that the e-bikes without the operator have not been classified under SAC 9973, Leasing or rental services without operator and Sl.no. 17(via) of Notification no. 11/2017 CT/R) dated 28th June 2017 cannot be changed for the instantaneous case.