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The retrofitted vehicle merits classification under heading 8711 20 19 and hence attracts GST @ 28% and applicant is entitled for input tax credit of tax paid on purchase of vehicle i.e. scooter

Classification of Goods In the instant case, The applicant has sought advance ruling in respect of the following questions:

Whether he can bill the scooter at 5% GST under HSN 8713 along with retro-fitment and it shall not restrict any input tax credit on purchase of vehicle under HSN 8711 at 28% GST?

the retro fitted two-wheeler is nothing but a two-wheeler purchased by the applicant under heading 8711 20 19, added with additional components/accessories and hence does not change its basic structure. Therefore, the said retro fitted two-wheeler merits classification under heading 8711 20 19 only.

The next issue before us to decide is whether the tax paid on two wheelers and retrofit equipment is available to the applicant as input tax credit or not. In the instant case the two-wheeler is purchased and is retrofitted with accessories to supply as retrofitted vehicle under heading 8711 20 19.

Held that— The retrofitted vehicle merits classification under heading 8711 20 19 and hence attracts GST @ 28% and applicant is entitled for input tax credit of tax paid on purchase of vehicle i.e. scooter.—Sai Motors, In Re… [2020] 24 TAXLOK.COM 019 (AAR-Karnataka)