TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 538
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.... the CGST/SGST Act 2017 as specified above. 4. Contentions of the Applicant. 4.1. The applicant submits that they are engaged in the whole sale and retail business of outboard engines (Customs Tariff heading 8407) and spare parts (8483,9409,8487, etc) for use in fishing vessels, factory ships and other vessels for processing and preserving fishery products (8902). Their major customers are fishermen who own fishing boats. 4.2. The applicant submits that as per serial No. 252 of Schedule-1of Notification No. 01/2017 CT (Rate) dated 28.06.2017, read with CBIC Circular 52/26/2018-GST dated 09.08.2018 the rate of tax of outboard engines falling under heading 8407, sold to fishermen is @ 5% and to others @ 28%. The supply to the fishermen is strictly on the basis of certificates and documents issued by both Central and State Government such as identity card, Certificate of registration, etc. to ensure the goods are actually used for the fishing purpose. 4.3. Now the applicant propose to widen their business of spare parts of fishing vessels such as Gear box, Carburetor, Propeller etc. Since the applicant has a divergent view on the rate of tax, they sought for a specific ruling with....
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....arts 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 and its spare parts are supplied for use as part of a fishing vessel falling under Customs Tariff Heading 8902, then the marine engine and its spare parts as part of the fishing vessel will only attract GST at the rate of 5% as per the entry at Sl.No.252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. Further, we find that the question before us is already clarified by the CBIC by Circular No. 52/26/2018-GST dated 09.08.2018. The relevant paragraph 10 of the circular reads as follows; "10.1 Applicability of GST on the marine engine: Reference has been received seeking clarification regarding GST rates on Marine engines. The fishing vessels are classifiable under heading 8902, and attract GST @ 5%, as per SL. No. 247 of Schedule I of the notification No. 01/2017-Central Tax (rate) dated 28.06.2017. Further, parts of goods of heading 8902, falling under any chapter also attract GST rate of 5%, vide SL. No. 252 of Schedule I of the said notification. The Marine engine for fishing ....
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....the insertion of entry "(ib) Maintenance, repair, or overhaul services for ships and other vessels, including their engines and other components or parts" under Sl. No. 25 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time. Prior to this amendment, the aforementioned services were classified under Sl. No. 25(ii) of Notification No. 11/2017-Central Tax (Rate) and were subject to a tax rate of 18% (9% CGST + 9% SGST). Whenever there is a change in the rate of tax for the supply of goods or services, Section 14 of the CGST Act determines the time of supply, which is crucial for applying the appropriate tax rate. Section 14 of the CGST Act is reproduced below; 14. Change in rate of tax in respect of supply of goods or services.- Notwithstanding anything contained in section 12 or section 13, the time of supply, where there is a change in the rate of tax in respect of goods or services or both, shall be determined in the following manner, namely :- (a) in case the goods or services or both have been supplied before the change in rate of tax,- (i) where the invoice for the same has been issued and the payment is also received after the c....
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.... + 2.5% SGST) as per Serial Number 252 of Schedule 1 of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 or not? RULING: The marine engines and their spare parts, when supplied for use as part of a fishing vessel classified under Customs Tariff Heading 8902, will be subject to GST at the rate of 5% (2.5% CGST + 2.5% SGST) as per Sl. No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. However, if these items are supplied for use in any application other than as parts of goods classified under headings 8901, 8902, 8904, 8905, 8906, and 8907, the applicable GST rate will be determined based on the relevant Customs Tariff Heading under which they are classified. Question No. 2. Whether Gear Box Falling under goods of heading 8483, carburetor falling under goods of heading 8487 etc. (when used as part of fishing vessel of Customs Tariff heading 8902) attracts a GST rate of 5% (2.5% CGST + 2.5% SGST) as per of Schedule 1, Serial Number 252 of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 or not? RULING: The gearbox, classified under Customs Tariff Heading 8483, when supplied for use as part of a fishing vessel under Customs....