Andhra Pradesh Authority for Advance Rulings (AAR) has recently stated that the car seat covers would be levied with the highest GST rate of 28%.
The M/s. Saddles International Automotive & Aviation Interiors Private Limited filed an application asking for clarification on the GST rate on the car seats. The company is engaged in the manufacturing and selling of car seats that are installed on the car seat on the final car accessories.
However, the bench having members Mr D Ramesh and Mr Syam Sunder observed that parts, and ‘accessories’, ‘seat covers are not same as seat as they have different agenda than a seat has altogether.
The bench stated in the judgment, “They are meant for the protection of the seats and the functional value of seat covers is the comfort and convenience it extends to the driver and the passengers. Thus, the ‘seat covers’ are not essential parts of the seats but accessories that enhance their functional value. Even in general trade parlance or in terms of their specific usage, the seat covers, are considered as accessories and customized as per the preferences of the clients.”
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Also to mention that trading community has taken the fact that automobile accessories being a category of articles relevant to the non-essential automotive parts and only serves as the show-off or addiction to the style of the car.
The bench finally stated that the” ‘seat covers’ provide a new look to the interior of the car, and also make it more comfortable for passengers. It is pertinent to mention in this context that seat covers were covered under ‘accessories’ in the pre-GST regime too. car seat covers were classified under heading 87 08 as accessories.”
There are multiple judgments earlier based on the automotive parts and accessories and almost all have considered the non-essential parts or accessories to be different from the basic or essential part of the automobile needed to operate it.
