GST Rate of 28% applicable on Tata Ace Garbage Tipper vehicle used for collecting household garbage: AAR

Question a:-Whether Tata Ace Garbage Tipper vehicle with its variants for Garbage applications as specified in Annexure ‘2’ (hereinafter called as Garbage Tipper vehicles), which will be manufactured exclusively keeping in view the requirements of National Green Tribunal (NGT in short), for supply to Municipal Corporations, Municipalities, Urban Development Bodies, Gram Panchayats and to contractors to whom operation & maintenance contract has been awarded by these Govt. bodies under Swachh Bharat Mission, for collection and disposal of household garbage, are classifiable under Tariff Item 8705.90.00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as Special Purpose Motor Vehicles or is classifiable under any other appropriate Tariff item?

Answer: -Answer is in negative.

Question b: -Whether the above-mentioned Garbage Tipper vehicles would attract IGST@ 18% under Sr. No. 401A under Schedule Ill of IGST Rates specified under Notification No. 1/2017-lntegrated Tax (Rate), dated 28.06.2017, as amended?

Answer: -Answer is in negative.

Question c: -If answer to question (b) above is in negative, what IGST rate would be applicable on the above-mentioned Garbage Tipper vehicles?

Answer: -IGST@28%.

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