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2018 (9) TMI 1337 - AAR - GSTClassification of goods - Disc Brake Pads - What is the appropriate classification of ‘Disc Brake Pads’ under GST? Whether ‘Disc Brake Pads’ supplied by the Applicant is covered under Sl.No. 170 of Schedule IV of N/N. 1/2017 dated 28.06.2017- Integrated Tax (Rate), i.e., under Tariff Heading 8708 attracting GST at 28% or under Sl.No.182 B of Schedule III of the Rate Notification i.e., under Tariff Heading 6813 attracting GST Rate of 18%? Held that:- Friction Material in the form of discs or pads or any other form consisting of mineral materials with or without textiles are classifiable under CTH 6813 if they are not mounted. But when they are mounted including friction material fixed to a metal plate provided with circular cavities, perforated tongues or similar fittings for disc brakes, these are classified as parts of the machines or vehicles for which they are designed. In the present case, the product consists of a friction material (made up of organic fibers and minerals, graphite) which is bonded with a steel backing plate forming an integrated component. Heading 6813 specifically excludes such mounted brake linings which are rightly classifiable as parts of vehicles for which they are designed - Thus the product to be classified ‘Disk brake Pads’, a part of the motor vehicle, classifiable under Heading 87083000 as ‘Brakes and servo-brakes; parts thereof’. The product attracts 14% CGST covered under Sl.No. 170 of Schedule IV of Notification No. 01/2017 dated 28.06.2017- C.T. (rate) as amended and 14% SGST under Sl.No. 170 of Schedule IV of G.O. (Ms) No. 62 dated 29.06.2017 No. II(2)/CTR/532(d-4)/2017 respectively for intra state supply. Ruling:- ‘Disc Brake Pads’ manufactured and supplied by the Applicant are classified under Heading 87083000 and covered under S. No. 170 of Schedule IV of Notification No. 01/2017 CT (Rate) dated 28.06.2017 and Sl.No. 170 of Schedule IV of G.O. (Ms) No. 62 dated 29.06.2017 No. II(2)/CTR/532(d-4)/2017 attracting 14% CGST/14% SGST respectively.
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