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September 18, 2023

Decision on the GST HSN Code for Electric Vehicles and Parts

Decision on the GST HSN Code for Electric Vehicles and Parts

Fact and issue of the case

M/s. Versatile Auto Components Private Limited Plot No.262, TSIIC Industrial Park, Phase 3, Pashamylaram, Patancheru Mandal, Sangareddy, Telangana-502 307 (36AADCV2331F1ZN) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules.

At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression ‘GST Act’ would be a common reference to both CGST Act and TGST Act.

It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted.


The applicant M/s. Versatile Auto Components Pvt Ltd is a manufacturer of low speed electric two wheeler (below 250 Watts/0.25 KV) and spares & accessories for the same. The applicant has approached the Advance Ruling Authority for the clarifications mentioned in the questions below. Hence the application.

Company Background M/s. Versatile Auto Components Private Limited ” is manufacturers and suppliers of Automobile Accessories. Fabricated from superior quality raw materials & engineered to perfection, our products have gained huge appreciation from our customers for their salient attributes like Corrosion Resistance, Durable, Dimension Accuracy, Protection, and Sturdiness etc.


The applicant would like to get clarification regarding which HSN code does our product fall

HSN code 87 – electrically operated vehicles, including two & three wheeled electric vechiles-12% GST (CGST-6, SGST -6% ) or (IGST 12%).

HSN code 87031010-electrically operated vehicles, including three wheeled electric motor vehicle.

Electrical & mechanical spare parts of electric vehicle.


The Authorized representatives of the unit namely Sri. K.Vamsi, CA & AR, chartered accountant & authorized representative attended the personal hearing held on 20.03.2023. The authorized representatives reiterated their averments in the application. Further, the Authorised Representative/Applicant M/s. Versatile Auto Components Private Limited, Sangareddy, reiterated that their case /Similar Case is not pending in any proceedings in the applicant’s case under any of the provision of the Act and have not already decided in any proceedings in the applicant’s case under any of the provisions of the Act.

Observation of the court

In view of the above clarification, all electrically operated vehicles including three wheeled electric vehicles are classified under HSN 8703 for the purpose of taxation under GST.

Further the above entry does not have any reference to electrical and mechanical spare parts of the electrical vehicle. The Hon’ble Supreme Court of India (5 Member constitution bench) in VVS Sugars Vs Government of AP (1999) 114 STC 47 held that ‘A taxing statute must be interpreted as it reads, with no additions and no subtractions on the ground of legislative intent or otherwise’. Therefore it cannot be inferred that parts of electrical vehicles fall under the above HSN code. Hence the goods “Electrical and Mechanical spare parts of electrical vehicles” fall under S.No 453 of Schedule-III of Notification no. 01/2017 dt:28.06.2017 i.e., “Goods which are not specified in Schedule I, II, IV, V or VI” falling in any chapter of HSN.


In the result, appeal of the assessee is allowed and ruled in favour of the assessee

Read the full order from here


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