For taxation purpose, your car seat cover is deemed as an 'accessory' and is not a 'part' of the seat. In a case, the Andhra Pradesh Authority for Advance Ruling (AAR) has rejected the plea by an applicant who put up the case for terming the car seat cover as a part of the seat and hence attracting lower GST rate of 18%. The AAR upheld that car seat cover is actually an 'accessory', which like the car, would attract a higher GST rate of 28%.
In a case pertaining to Saddles International Automotive & Aviation Interiors Pvt Ltd, the AAR held that car seat covers come under the purview of HSN 8708 of Notification no 01/2017-CT dated June 28, 2017 that attracts GST of 28% and not under HSN 9401 that provides the definition of 'part', wherein GST rate was slashed via an amendment to 18%.
Notably in the plea Saddles mentioned that seat covers though at first glance might not seem to be important in the completion of the structure of the car seats but they help in the assembly and complete the car seat's overall structure. Furthermore, the functions that the car seat cover performs are indispensable. Besides the company defending its viewpoint said accessory is something which complements the main product. Also it should be of use in various machines or equipment.
Nonetheless, the disputable item here i.e. the car seat cover can only be used with seats and it cannot be used elsewhere. AAR however ruled that car seat covers cannot be termed as part of the seats in the instant case and are meant for safeguarding the seats, while its functional value is the convenience and comfort that it provides to the car driver and other passengers.
So, the seat covers are not essential part of the car's seat but instead are an 'accessory'. Hence based on the given case, the AAR categorizes car seat cover as an 'accessory', attracting an higher GST.