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TMI BlogMarine Vessel parts attracts GST@ 5%X X X X Extracts X X X X X X X X Extracts X X X X ..... Marine Vessel parts attracts GST@ 5% X X X X Extracts X X X X X X X X Extracts X X X X ..... re taxable at the rate of 5% GST and further ruled that the replacement of parts without consideration during the warranty period is not liable to GST. Facts: S. Radhakrishnan ("the Applicant") is a proprietor of M/s. Bright Metal Works and engaged in the manufacturing of marine propellers, stern tube set, rudder sets, SS propeller shafts, MS shafts for coupling, intermediate shafts and cutlass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rubber bushes (cumulatively referred as "the Goods") used in fishing / floating vessels. The Applicant contended that the goods falls under Customs Tariff Heading (CTH) 8902 and accordingly attracts GST @5% as 'parts of goods of CTH 8902' as SI. No.252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated June 28, 2017 ("the Goods Rate Notification"). The Applicant submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the goods are individually classified as follows: marine propellers-8487; rubber set for fishing boats - 7325; stem tube set for fishing boats-7304; SS Propeller shaft - 7221 and 7222; MS Shaft-7213 and attracts GST @18% as per SI. Nos. 371, 237, 218, 209 and 204 of Schedule III of the Goods Rate Notification. The Applicant submitted that Sl. No. 252 of Schedule I the Goods Rate Notification s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olely depends on the nature of the use to which the commodities. Thus, the GST applicable to the goods is 5%. The Applicant filed an application before the AAR, Kerala, seeking the clarification regarding the taxability of fishing / floating vessels. Issues: * Whether goods which can be individually classifiable can be classified as part of fishing / floating vessels under SI. No.252 of Sched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule I the Goods Rate Notification? * Whether replacement of parts during the warranty period constitute supply and accordingly leviable to GST? Held: The AAR, Kerala, IN RE: S. RADHAKRISHNAN, M/S. BRIGHT METAL WORKS - 2023 (7) TMI 753 - AUTHORITY FOR ADVANCE RULING, KERALA ruled as under: * Observed that, GST rate on marine propellers, stem tube set, rudder set, SS propellers shaft, MS shaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for couplings and intermediate and cutlass rubber bushes when supplied for use as part of goods of CTH 8901, 8902, 8904, 8905, 8906 or 8907 attracts 5% GST as per entry at SI. No. 252 of the Goods Rate Notification. * Held that, the goods falling under any chapter when supplied for use as parts of fishing or floating vessels are taxable at the rate of 5% as per entry SI. No.252 of the Goods Rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Notification.
* Further held that, the replacement of parts without consideration during the warranty period is not liable to GST because the goods are supplied with a warranty, the consideration received as part of the original supply includes the consideration for the promise to repair or replace.
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