The Maharashtra Authority of Advance Ruling (AAR) stated that the supply of Tata garbage tipper vehicles to Municipalities draws 28% GST.
The two-member bench of M. Rammohan Rao and T.R. Ramnani sees that the garbage tipper vehicles could be utilized for the purpose of goods transportation. The starting words of Entry 8704 are “Motor Vehicles for the Transport of Goods.” hence, the subject rate applied will be 28%; since only refrigerated vehicles would be taxed at 18% and all the trucks that has been comes beneath the heading 8704 would be levied to tax at 28% rate.
The petitioner i.e Tata Motors, engaged in the business of manufacturing and selling vehicles and chassis for vehicles. The petitioner manufactures commercial vehicles and passenger vehicles.
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Tata Ace Garbage Tipper vehicles and variants would be intended to be manufactured by the petitioner that shall be provided to the municipal corporations, municipalities, urban development bodies, gram panchayats, and contractors as allocated by government bodies for the operation and maintenance contracts beneath the Swachh Bharat Mission. Such would be for the collection and disposal of household garbage. The Garbage Tipper vehicle is made in a manner that the same enables access to small lanes for garbage collection and tipping the same into a compactor or at dumping sites which the government decides.
The petitioner asks for the advance ruling related to the levied GST rate on the garbage tipper vehicles.
The petitioner, garbage tipper vehicle is counted beneath Tariff Item 8705.90.00 and draws an 18% IGST.
The jurisdiction officer claimed that the compactor and loading device do not prevent the vehicle from being categorized under heading 8704. The removable container body is no more undersized a body for the transport of goods than a fixed body or dumper body on a refuse truck. A motor vehicle built for transport refuse with a removable container body is no less a refuse truck compared to a designed one with a fixed body. Compacting refuse collectors are categorized as motor vehicles beneath heading 8704.
The Authority for Advance Rulings (AAR) tracked, for motor vehicles that have been utilised for the transport of goods attracts 28% IGST stipulated under Sr. No. 166 under Schedule IV of IGST Rates by Notification No. 1/2017-integrated Tax (Rate) on June 28, 2017.
