Applicable 18% GST Rate on Rent on E-bikes and Bicycles

Last Updated On: Oct. 13, 2020, 12:25 p.m.

The Karnataka Authority of Advance Ruling(AAR) announces that rent on E-bikes and Bicycle is taxed at the rate of 5% and 12% hiring e-bikes and bicycles for rent without an operator.

The Applicant, Yulu Bikes Pvt.Ltd has the business of renting assistance without operator SI.NO.17 of Central Tax (Rate) Notification No.11/2017 on 28th June 2017 as changed. The advance ruling matter of whether the renting of e-bikes, bicycles without the operator can be assigned was questioned by the petitioner.

“The applicant’s services are covered under SAC 9966. This preferred description is to the general one as per the explanatory notes and thereby we conclude that the applicant’s activity is classifiable under the Heading 9966.”

The Authority Of Advanced Ruling(AAR) consisting of Dr. M.P.ravi Prasad and Mashood ur Rehman Farooqui said that e-bikes without an operator are not been classified under SAC 9973, Leasing or rental services without operator and of notification no.11/2017 CT/R dated 28th June 2017 cannot for the instantaneous case.




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