The Tamil Nadu bench of the Authority for Advance Rulings (AAR) ruled that 18% GST on toys comprises electronic objects no matter in what way they are used.
The petitioner owner of M/s Navabharat Importers are regular importers and traders of toys via different countries and sell these goods in retail and via e-commerce platforms. They mentioned that they indeed have the purpose to manufacture these toys in India in subsequent time.
The issue towards AAR bench was that when the physical force is the main execution of a toy and when the light and music are ancillary for that than whether it is to come beneath the “Electronic Toys” or “other than Electronic Toys”?
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The bench sees that toys that are majorly operated through manual force or are needed to be manually forced are acknowledged as non-electronic toys and the toys operated through the use of electricity or power generated from the batteries whether chargeable or replaceable are regarded as an electronic toys.
Judges K PhanindraReddy and M.V.S Chaudhary revealed that the common parlance itself needs to be subjected in absence of the definition of the Electronic toy in the provided notification or in the act.
Judges mentioned that the decision of the Madras High court for Southern Refractories & Minerals Vs. The state of Tamil Nadu ruled that in understanding the entries in taxing schedules the effective meaning must be provided to these terms and the classification built through the Indian standard Institution for the goods in question can be practiced to find out the mentioned known or commercial meaning. Thus the reference of the standard subject to the toys depends on through the Tamil Nadu Advance Ruling Authority is a part of common parlance to ascertain the term Electronic Toys.
The judgment has been announced with detailed compliance and here we have added the complete judgment in the original format to offer a clear understanding of the said rule.
