Toys having Physical force as primary action with ancillay light & music are classified under Electronic Toys for GST

The applicant is regular importers and traders of toys from various countries, they sell these goods in India, in retail as well as through E Commerce platforms. They also intend to manufacture these toys in India in future. The toys imported include both electronically operated toys as well as manually operated toys in which electronic parts were fitted for providing light, music and horn etc. Some of the toys and their functionalities are listed below:

Children’s Scooter SC-007: It 1s a scooter toy applicable for the age range between 3-5 years old in which the toddler will be placed in the scat provided and has to move with the wheels provided only by applying pressure with the legs and handle bar shall be used to change lhc dircclion. This Loy is provided wilh light in the handle bar and the music.

Activity Ride-on: It is a car toy applicable for the age ranging from 12 Months – 36 Months old. The toddler will be placed in the scat provided and has lo he pushed by the other person for the movement and the steering provided shall be used for changing the direction. This toy is provided with electronic lights and Music in the form of buttons present in the steering.

Smart Tricycle: It is a Tricycle toy which is applicable for the age range up to 18 months. The toddler has to be placed in the scat provided and has to pedal for the movement of the Tricycle. The handle bar provided shall be used for direction also in the handle bar there are buttons present for light, horn and Music.

Kick Scooter: It is a Tricycle applicable for the age ranging from 3-14 years. This Tricycle has to be driven upon standing on one leg in the tri-cycle and pushing with the other leg. The direction of the tri-cycle shall be changed by turning the handle bar. The bottom of this tri-cycle is provided with battery provision for light and music.

Views of Authority & Ruling

• The products are designed to develop gross motor skills in as much as they are designed to use the physical force and can be enjoyed by either pedaling or by pushing with the leg and also fine motor skills like blinking, discrete tasks of switching on/off the music/light etc provided through the inbuilt electronic circuit, powered with the electrical energy (battery)/ induction force.
• Both the functions of the toys are targeted to develop a certain skill while amusing the child playing with it.
• Therefore, we hold that the products in hand are ‘Electronic Toys’ and the applicable GST Rate is as per SI. No. 440 of Schedule-III of the Rate Notification i.e. 18%.