Classification of goods— In the instant case, the applicant is engaged in the manufacture and supply of 'amusement park ride karts' commonly known as ‘Go-Karts'.

The applicant has sought advance ruling in respect of the following questions:

i. Whether the 'amusement park ride karts' commonly known as ‘Go-karts' manufactured and supplied by the applicant meant solely for the purpose of joy riding or amusement or recreational purpose and are designed and shaped to suit to run or drive only on extremely smooth specially designed surfaced tracks or closed circuits, are classifiable under Chapter Tariff Heading 9508 of the First Schedule to the Customs Tariff Act, 1975?

ii. Whether the 'amusement park ride karts' commonly known as ‘Go-karts' manufactured and supplied by the Applicant which are not roadworthy and cannot be registered as Motor Vehicles with the Regional Transport Authority (‘RTO' for short) are classifiable as 'Motor Vehicles meant for carrying of passengers / persons' under Chapter Tariff Heading 8703 of the First Schedule to the Customs Tariff Act, 1975?

iii. Whether the 'amusement park ride karts' commonly known as ‘Go-karts' manufactured and supplied by the Applicant attracts GST at the rate of 18% under Sl.No.441A of Schedule III to Notification No.1/2017-Central Tax (Rate) dated 28-06-2017 as amended by Notification No.18/ 2021-Central Tax (Rate) dated 28-12-2021 or at the rate of 18% under Sl.No.453 of Schedule III to Notification No.1/2017-Central Tax (Rate), dated 28-06-2017?

The applicant states that they are engaged in manufacture and supply of ‘amusement park ride karts' commonly known as 'Go karts', which are mainly used for joy riding or amusement ride by both children as well as adults. The Applicant submits that the products manufactured by them are designed and shaped to run or drive only on extremely smooth, specially designed tracks or closed circuits and not on track or normal automobiles are able to operate.

The Applicant states that they were under the impression that “Go Karts” are classifiable under Chapter Tariff Heading (CTH) 9503 but were advised to classify under CTH 8703 and pay GST at 28%. So the applicant wants to know whether 'amusement park ride karts' commonly known as 'Go karts', are to be classified under CTH 8703 taxable at 28% or under CTH 9503 taxable at 18%.

Held that— 

i. The 'amusement park ride karts' commonly known as 'Go-karts' manufactured and supplied by the applicant meant solely for the purpose of joy riding or amusement or recreational purpose and are designed and shaped to suit to run or drive only on extremely smooth specially designed surfaced tracks or closed circuits, are classifiable under Chapter Tariff Heading 9508 of the First Schedule to the Customs Tariff Act, 1975.

ii. The 'amusement park ride karts' commonly known as 'Go-karts' manufactured and supplied by the Applicant which are not roadworthy and cannot be registered as Motor Vehicles with the Regional Transport Authority (“RTO' for short) are not classifiable as 'Motor Vehicles meant for carrying of passengers / persons' under Chapter Tariff Heading 8703 of the First Schedule to the Customs Tariff Act, 1975.

iii. The 'amusement park ride karts' commonly known as 'Go-karts' manufactured and supplied by the Applicant attracts GST at the rate of 18O as per SI.No.441A of Schedule III to Notification No. 1/2017-Central Tax (Rate) dated 28-06-2017 as amended by Notification No.18/ 2021-Central Tax (Rate) dated 28-12-2021.