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TMI Blog2022 (10) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... ne Propulsion engines - Spark-ignition reciprocating or rotary internal combustion piston engines and attracts GST at the rate of 28%. Fishing vessels, factory ships and other vessels for processing or preserving fishery products fall under Customs Tariff Heading 8902 and are liable to GST at the rate of 5% as per SI No. 247 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. However, as per entry in SI No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907 falling under any chapter of the Customs Tariff attracts GST at the rate of 5%. Therefore, if the Marine engines are supplied for use as part of a fishing vessel fallin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the credit and marketing requirements of the traditional fisheries sector. It is an apex co-operative society registered on 19-03-1984 under the Kerala Cooperative Societies Act, 1969. 2. At the outset, the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are the same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued thereunder shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued thereunder. 3. The applicant requested an advance ruling on the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of import of marine engine and Bill of Entry in respect of import of parts of marine engines are submitted with this application. 4.3. Recently, in an application filed by M/s. South Indian Federation of Fishermen Societies, Trivandrum, the Authority of Advance Ruling, Kerala, held in Advance Ruling No. KER/10/2021 dtd.25-05-2021 that marine engines and their spare parts supplied by them for fishing vessels of heading 8902 would attract a GST rate of 5% only. The applicant files this application under these circumstances. The applicant submits that they are legally eligible to supply marine engine of heading 8407 or any heading and its spare parts falling under any heading for being used as parts of a fishing vessel of hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cited Advance Ruling). 5. Remarks of the Jurisdictional Officer 5.1. The application was forwarded to the jurisdictional officer as per provisions of Section 98(1) of the CGST Act. The jurisdictional officer has not offered any comments and hence it is presumed that the jurisdictional officer has no specific comments to offer. It is also construed that no proceedings are pending on the issue against the applicant. 6. Personal hearing 6.1. The applicant was heard on 08.12.2021. The applicant reiterated the contentions made in the application and requested to issue a ruling based on the submissions in the application 7. Discussion and Findings 7.1. The issue was examined in detail. The application is admissible as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y chapter of the Customs Tariff attracts GST at the rate of 5 %. Therefore, if the Marine engines are supplied for use as part of a fishing vessel falling under Customs Tariff Heading 8902, then the marine engine as part of a fishing vessel will only attract GST at the rate of 5% as per the entry in SI No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. Further, we find that the question raised before us is already clarified by the CBIC by Circular No.52/26/2018 - GST dated 09.08.2018. The relevant Para 10 of the circular reads as follows;- 10.1 Applicability of GST on marine engine: Reference has been received seeking clarification regarding GST rates on Marine Engine. The fishing vessels are classif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use other than as parts of fishing vessels as stated above, GST at the rate applicable under the respective Customs Tariff Headings in which they are classified will apply. 7.4. Given the observations stated above, the following rulings are issued: RULING 1. Applicability of GST rate of 5% (CGST 2.5% + SGST 2.5%) on marine engines of heading 8407, being the part of fishing vessel of heading 8902, as per Entry Serial No.252 of Schedule I of Notification No.1/2017 CT(R) dated 28.06.2017 State Notification No. S.R.O.360/2017. 2. Applicability of GST rate of 5% on spare parts of marine engine of heading 8407, used as part of fishing vessel of heading 8902, as per Entry Serial No.252 of Schedule I of Notification No.1/2017 CT( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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