Children Scooter, Smart Tricycle etc. fitted with electronic circuit will be taxable at 18% under GST: AAR

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 6 January, 2022

Recent Posts

Blog, Company Law

What is Terminal Value in Valuation – Definition | Approaches | Importance

Blog, Advisory, Company Law

[Analysis] SEBI Proposes Enhancements to the SME IPO Framework | A Detailed Overview of the New Regulations and Their Impact

Latest from Taxmann

Tamil Nadu Goods and Services Tax Act 2017 - Children Scooter; Activity Ride-on; Smart Tricycle and Kick Scooter - Heading No. 9503

Case Details: Authority for Advance Rulings, Tamilnadu Joshna Chandresh Shah, In re - [2021] 133 taxmann.com 307 (AAR - TAMILNADU)

Judiciary and Counsel Details

    • T.G. Venkatesh and Smt. K. Latha, Member

Facts of the Case

The applicant was a dealer of ‘Toys’. The toys dealt with include electronically operated toys as well as manually operated toys in which electronic parts were fitted for providing light, music and horn, etc. It filed an application for advance ruling to determine taxability of toys fitted with electronic circuit.

AAR Held

The Authority for Advance Ruling observed that toys namely Children Scooter, Activity Ride-on, Smart Tricycle and Kick Scooter would contain an electronic circuit for flashing lights, playing music/sound and horn, which would be either powered by the battery housed in the toy or powered by the induction force applied while playing with the toy. In these goods, physical force would be the primary action but they also contain an inbuilt electronic circuit and therefore, these goods would be treated as ‘Electronic Toys’. Thus, as per Sl. No. 440 of Schedule III of Notification No. 1/2017 – Central Tax (Rate), dated 28-6-2017, the applicable GST Rate on Children Scooter, Smart Tricycle etc. fitted with electronic circuit would be 18%.

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied