TMI Blog2020 (10) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices with or without operator and includes rental or operational leasing of machinery and equipment, personal and household goods, but does not include leasing services of machinery and equipment of personal and household goods on a purely financial service basis. Further sub headings of 9973 pertain to other goods, IPR, etc with no mention of transport goods/vehicle. Thus the applicant s services are squarely covered under SAC 9966. The specific description is preferred to general one as per the Explanatory Notes and hence we conclude that applicant s activity is classifiable under Heading 9966. Applicant s interpretation that post 30th Sept 2019, renting/leasing of all goods without operator should be falling under Heading 9973 is not correct and hence is not tenable under the law, for the reason that the so called amendment, under Notification No. 20/2019-C.T.(R) dated 30.09.2019, is to the rate of GST for the services covered under SAC 9973, but not to the classification of the services. Further the amendment under Notification No. 20/2019-CT (R) dated 30.09.2019 amends entry bearing SI.No.17, covering the services classified under SAC 9973, to substitute Leasing or r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant have sought advance ruling in respect of the following question so as to confirm their understanding of law. Whether renting of e-bikes(Miracle), bicycles(Move) without operator can be classified under the SAC 9973 - Leasing or rental services without operator - Sl.No.17 (viia) of Notification No.11/2017 Central Tax (Rate) dated 28th June 2017 as amended? 5. Admissibility of the application : The applicant filed the instant application, in relation to the classification of their services being provided and have sought advance ruling in respect of the question on the issues covered under Section 97 (2) (a) of the CGST Act 2017 and hence the application is admitted. 6. Applicant s interpretation of law : The applicant furnishes their understanding of law, in annexure-II to the application, which is as under: 6.1 The Applicant is engaged in renting of e-bikes (Miracle), bicycles (Move) in Bengaluru, Karnataka through a technology driven mobility platform. The Applicant enters into contract/agreement with the customers with regard to usage / renting of the e-bikes (Miracle), bicycles (Move) provided by the applicant and charges based on the of time of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons - a. The applicant rents out its vehicles without operator. b. The heading 9973 includes rental or operational leasing of machinery and equipment and personal and household goods, without operator. c. Leasing of vehicles can also be covered under this heading by virtue of entry 997319 Leasing or rental services concerning other machinery and equipment without operator which includes i. leasing, renting or hiring services concerning all kinds of machinery, whether or not electrical, except personal or household goods, generally used as capital goods by industry, such as engines and turbines, machine tools, mining and oil field equipment, lifting and handling equipment, coin/ card operated gambling machines, exhibition material, professional, scientific measuring and control apparatus, accommodation and office containers, other commercial and industrial machinery etc. d. Further, sl.no 17 (vi) of notification no.11/2017 C.T(R) dated 28th June 2017 as amended also evidence that the heading 9973 includes the leasing or renting of vehicles which reads as follows - i. Leasing of motor vehicles purchased and leased prior to 1st July 2017 The Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax for renting of vehicles would be applied as the same rate applicable to the respective vehicles as mentioned above and concludes as under: The rate of tax for renting of vehicles without operator under HSN 9973 would be as follows ii. Electric vehicles (i.e. Scheme Miracle ) would be @ 5% and iii. Bicycles (i.e. Scheme Move ) would be @ 12%. PERSONAL HEARING / PROCEEDINGS HELD ON 30.07.2020 7. Sri. Nagarjun, C A 86 duly authorised representative of the applicant appeared for personal hearing proceedings held on 30.07.2020 reiterated the facts narrated in their application. 8. FINDINGS DISCUSSION 8.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by them during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 8.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd hence we conclude that applicant s activity is classifiable under Heading 9966. 8.7 Applicant s interpretation that post 30th Sept 2019, renting/leasing of all goods without operator should be falling under Heading 9973 is not correct and hence is not tenable under the law, for the reason that the so called amendment, under Notification No. 20/2019-C.T.(R) dated 30.09.2019, is to the rate of GST for the services covered under SAC 9973, but not to the classification of the services. Further the amendment under Notification No. 20/2019-CT (R) dated 30.09.2019 amends entry bearing SI.No.17, covering the services classified under SAC 9973, to substitute Leasing or rental services, without operator, other than (i), (ii), (iii), (iv), (vi) and (viia) above for item viii in column 3. Therefore the said amendment is irrelevant to the instant case. 9. In view of the foregoing, we pass the following RULING Renting of e-bikes/ bicycles without operator cannot be classified under SAC 9973 - Leasing or rental services without operator and Sl.no.17(viia) of Notification no.11/2017 CT(R) dated 28th June 2017 as amended is not applicable to the instant case. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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