Court Buzz, GST

Karnataka AAR classifies renting of e-bikes and bicycles under SAC 9966.

Case: Yulu Bikes Pvt. Ltd.

Forum: Karnataka AAR


The Applicant is engaged in renting of vehicles like e-bikes and bicycles 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), bicycles and charge based on the of usage of such vehicles. The Applicant charges GST @ 18% in respect of the services. The Applicant sought an advanced ruling on whether renting of e-bikes and bicycles 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).

Key points

The AAR in its findings held that sub headings of SAC 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 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. Thus, the renting of e-bikes/ bicycles without operator cannot be classified under SAC 9973 – Leasing or rental services without operator and of Notification no.11/ 2017 CT(R) dated 28th June 2017 as amended is not applicable to the Applicant

Vox Analytica GST
Would you like to subscribe to GST Updates by Riverus? Stay clued in on the latest notifications, circulars, other legislation information and case laws as soon as they are available.

Share your thoughts using the comment section below

%d bloggers like this: