Shanti Prime Publication Pvt. Ltd.
Classification of goods—The applicant seeking an advance ruling on classification and rate of applicable GST on “Disc Brake Pads & Brakes Shoes” being used in automobiles. question before authority is to determine whether the disc brake pads & brake shoes manufactured by the applicant deserve classification under Chapter 6813 (Friction material and articles thereof) or under Chapter 8708 of the GST Tariff (which deals with parts and accessories of the motor vehicle). 1 TAXLOK.COM 12 (AAR-UTTARAKHAND)
Ruling—It is observed that process of manufacture carried out by the applicant, the ingredients used, the size & design of the metal plate (including its perforation, the positioning of the cavities/holes etc.), the manner in which it is marketed, on the whole, make the end product compatible for usage solely with the intended automobile. After going through the aforesaid process read with the relevant Section/Chapter Notes and the HSN Explanatory Notes, authority is of the view that the said “disk brakes pads” and “brake shoes” are appropriately classifiable as part and accessory of automobiles and not as friction material. Therefore that Disc Brake Pads and Shoes are required to be classified under subheading 8708 of GST Tariff, as other parts and accessories of the motor vehicles of headings 8701 to 8705. Since the good in question are classifiable under Chapter Heading 8708, accordingly applicant is liable to pay GST applicable under the said Chapter Head which is 28% as on date.  2 TAXLOK.COM 026 (AAR-Uttarakhand).