Recently the Tamil Nadu Authority of Advance Ruling (AAR) notified that the Children Scooter, Activity Ride-on, Smart Tricycle and Kick Scooter are eligible to be levied with 18% GST.
One applicant named Joshna Candesh Shah also happens to be the trader as well as importer of playing toys from multiple regions and countries and further sells them to the Indian region both through the means of e-commerce and retail channel. Apart from retailing they are also concerned with the manufacturing of such toys within India.
The imported toys had the complete internal mechanism of electronically operated parts such as horn, music and light. The applicant moved to the advance ruling authority for the clarification on the toy operation which included the physical force as a major action and the further movement and reaction would be music and light of the toy.
The applicant asked whether it can be classified under the electronic toys or the other than electronic toys category. On the basis of all the facts, the corma including L.Latha and T.G.Venkatesh mentioned that Children Scooter, Activity Ride-on, Smart Tricycle and Kick Scooter, where there is the requirement of physical force and inbuilt circuits are to be electronic toys category and GST applicability is CGST @ 9% as per Sl.No. 440 of Schedule-III of Notification No. 01/2017 C.T.(Rate) dated 28.06.2017 and SGST 9% as per Sl.No. 440 of Schedule III to Notification No. II(2)/CTR/532(d-4/2017 vide G.O. (Ms) No. 62 dated 29.06.2017.
The AAR ruling mentioned the same in,” “We find that in the case at hand, the products are designed to develop gross motor skills in as much as they are designed to use the physical force and can be enjoyed by either pedaling, or by pushing with the leg and also fine motor skills like blinking, discrete tasks of switching on/off the music/light etc provided through the inbuilt electronic circuit, powered with the electrical energy (battery)/ induction force. Both the functions of the toys are targeted to develop a certain skill while amusing the child playing with it. Therefore, we hold that the products in hand are Electronic Toys’ and the applicable GST rate is as per Sl.No 440 of Schedule III of the Rate Notification.”
