5% GST leviable on Marine engine and its spare parts supplied for use in vessels: AAR

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  • Last Updated on 5 December, 2022

GST on Marine Engine

Case Details: Authority for Advance Rulings, Kerala Kerala State Co-operative Federation for Fisheries Development Ltd., In re - [2022] 145 taxmann.com 243 (AAR-KERALA)

Judiciary and Counsel Details

    • Dr S.l. Sreeparvathy & Abraham Renn S, Member
    • B. Somasekharan for the Respondent.

Facts of the Case

The applicant was a co-operative apex federation of primary level co-operative societies of fishermen of Kerala. It filed an application for advance ruling to determine taxability of marine engine and its spare parts supplied for use in vessels to the traditional fishermen for use in their fishing vessels.

AAR Held

The Authority for Advance Ruling observed that as per Serial No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28-6-2017, if marine engines and its spare parts would be supplied for use as part of fishing vessel falling under Customs Tariff Heading 8902, then marine engine as part of fishing vessel would only attract GST at the rate of 5%. However, if marine engines and its spare parts would be supplied for use other than as parts of fishing vessels, then GST would be levied at rate applicable under their respective Customs Tariff Headings.

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