The applicant M/s. Power Build Private Limited has submitted that in manufacturing of ‘Geared Motors’, Electric Motors are assembled with Gear Boxes manufactured by them. Commercially, a Gearbox cannot have any use without being rotated and coupled with motor affixed to it.
The applicant submitted that they are engaged in supplying ‘Geared Motor’, which is an assembly product of the ‘Electric Motor’ and ‘Gear Box’. Electric Motor is covered under HSN code 8501 attracting GST at 18%, while Gear Box falls under HSN code 8483 attracting GST at 28%, however, HSN code and tax rate for product ‘Geared Motor’ is not provided under law.
The applicant has raised following question for advance ruling in their application:- What is the HSN Code and GST Tax Rate of a product ‘Geared Motor’?
Tariff Heading 8483 does not cover Gear Boxes or other variable speed changers combined with a motor. Motor remain classified under Tariff Heading 8501 even when they are equipped with pulleys, with gears or gear boxes, of with a flexible shaft for operating hand tools.
Therefore, on basis of Explanatory Notes of HSN under Tariff Heading 8483 and 8501, it is evident that product ‘Geared Motor’, which is an assembly product of the ‘Electric Motor’ and ‘Gear Box’, will appropriately fall under Chapter Heading 8501 of Customs Tariff Act, 1975 attracting GST at 18 per cent
Citation: [2018] 94 taxmann.com 140 (AAR-GUJARAT)