E-Rickshaw Sold Without Battery Classifiable As An "Electrically Operated Motor Vehicle" : West Bengal AAR

The West Bengal Authority of Advance Ruling consisting of Brajesh Kumar Singh and Joyjit Banik has ruled that a three-wheeled electrically operated vehicle, commonly known as an e-rickshaw, when supplied without a battery, is classifiable as an "electrically operated motor vehicle" under HSN 8703. The applicant is in the business of importing spare parts for electrically operated vehicles. The applicant intends to enter into the business of manufacturing and reselling electrically operated three-wheeled vehicles in the state of West Bengal. The applicant has sought an advance ruling on the issue whether a three-wheeled electrically operated vehicle, commonly known as an e-rickshaw, when sold without a battery, is classifiable as an "electrically operated motor vehicle" under HSN 8703. The word "E-Rickshaw" is not defined under the GST law. However, it is defined in sub-section (2) of Section 2A of the Motor Vehicles Act. An E-rickshaw is a special-purpose battery-powered vehicle; power not exceeding 4000 watts; having three wheels; used for carrying goods or passengers, as the case may be, for hire or reward. The department submitted that Rule 2(u) of the Central Motor Vehicles Rules, 1989, defines "Battery Operated Vehicle." It means a vehicle adapted for use on roads and powered exclusively by an electric motor whose traction energy is supplied exclusively by a traction battery installed in the vehicle. Therefore, it is evident that a battery-operated vehicle, such as an e-rickshaw, must have a battery installed in it in order to enable it to operate on the power of an electric motor whose traction energy is supplied exclusively by the traction battery installed in the vehicle. An e-rickshaw without a battery installed in it is to be considered unfinished goods, at most as a frame or chassis of a vehicle, unable to operate as a complete vehicle on the road. Such an unfinished product cannot be categorised as an electrically operated vehicle. The AAR observed that the power of a battery-operated vehicle is solely generated from the rechargeable battery since it does not have any other source of propulsion. "Electrically operated vehicles" requires a single fact: that the vehicles will run solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such road vehicles, unless the battery is fitted to an e-rickshaw. It will not be able to run. The AAR relied on the advance ruling given by the Orissa AAR in the case of Anjali Enterprises. It was held by the Orissa AAR that when a vehicle which is solely operational on battery power is supplied without a battery, the same will qualify as a supply of an electrically operated vehicle and therefore shall be classifiable under tariff item 8703. Applicant's Name: Rohit Singh Kharwar Advance Ruling No. AD1903220134785 Dated: 30.06.2022 Click Here To Read/Download Order

E-Rickshaw Sold Without Battery Classifiable As An "Electrically Operated Motor Vehicle" : West Bengal AAR

Mariya Paliwala

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E-Rickshaw Sold Without Battery Classifiable As An "Electrically Operated Motor Vehicle" : West Bengal AAR

Mariya Paliwala

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

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This is a premium content
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