Question19: 
We asked this question:-
Our client is a manufacturer of Tyres. Based on the advice received from GST Mantra, we have advised our client that E-rickshaw`s Tyres falls under HSN code 4011, 4013 and GST rate is 5% considering that e-rickshaw are to be classified as three wheeled powered rickshaw. Now our client has received a notice from the GST Department that GST on e- rickshaw tyre is 28% under HSN code 4011, 4013 considering that it is not that tyre which is to be used in three wheeled powered cycle rickshaw which is defined as follows under Central Excise Tariff :-
`Powered cycle and Powered cycle rickshaw means a mechanically propelled cycle or as the case may be mechanically propelled rickshaw, which may also be paddled, if any necessity arises for so doing. The meaning of cycle and cycle rickshaw will be the same as used in common parlance.` We would like to say that our query is related to GST rate on E-rickshaw`s Tyres and not on E- rickshaw. So please advise.  

Answer:
From your previous quarries,  it appeared to us that your client is a supplier of motorized three wheeled rickshaw commonly known as e-rickshaw. Accordingly, Law Crux Team had given its replies.
From your latest question it has become clear that your client is a supplier of tyres of e-rickshaws and you are interested to know effective rate of tax applicable on such tyres Our reply to this question is as under;
Tyres are mentioned against S.No. 46 of Schedule IV appended to Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 as amended attracting GST @ 28%. The complete description of tyres given against the said entry is as under; 

Further, e-Rickshaw tyres are not covered under Schedule-I appended to the above said notification attracting 5% GST. Under above mentioned Notification definition of powered cycle/rickshaw is not given, hence, definition of the same given under Notification No.8/2003 CE dated 1.3.2003 has been adopted to decide the issue at hand. Said definition is reproduced here under;
"('powered cycle' or powered rickshaw means a mechanically propelled cycle or, as the case may be, mechanically propelled cycle rickshaw, which may also be peddled, if any necessity arises for so doing)". From the above definition it is fully clear that e-rickshaw cannot be termed as mechanically propelled cycle/rickshaw as it is operated with the help of batteries only and cannot be mechanically peddled.

Thus, contention of department appears to be correct and the lead provided by GST mantra is not correct.
(Reply dt.16/01/2018)