In re Rochem Separation Systems India Private Limited (GST AAR Maharashtra)
Question 1: What is applicable rate of GST on supply of Reverse Osmosis Plant/system (RO Plant/system) to Indian Navy/lndian Coast Guard in normal course?
Answer: – In view of the discussions made above, the applicable rate of GST is 18%.
Question 2: What is the applicable rate of GST on supply of RO Plant/system (Reverse Osmosis Plant) to the Indian Navy/Coast Guard which would be installed in/on a warship?
Answer: – In view of the discussions made above and in the absence of specific exemption, the applicable rate of GST is 18%.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the
Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively ] by M/s ROCHEM SEPARATION SYSTEMS INDIA PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the following question.
1. What is applicable rate of GST on supply of Reverse Osmosis Plant/system (RO Plant/system) to Indian Navy/lndian Coast Guard in normal course?
2. What is the applicable rate of GST on supply of RO Plant/system (Reverse Osmosis Plant) to the Indian Navy/Coast Guard which would be installed in/on a warship?
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression ‘GST Act’ would mean CGST Act and MGST Act.
2. FACTS AND CONTENTION – AS PER THE APPLICANT FACTS
2.1 M/s Rochem Separation Systems India Private Limited, the applicant received an order from Controller Procurement Material Organization (Vizag) Kancharapalem (Post), Eastern Naval Command, Visakhapatnam-530008 (‘buyer’) for supply of RO Plant/Water Purification System.
2.2 The applicant is engaged in supply of Reverse Osmosis Plant (RO Plant/System) classified under Chapter Heading 8421 as per GST Tariff. The applicant has been supplying the subject goods to various buyers by charging GST @ 18%. The applicant has been informed by the Indian Naval Department that, GST should be charged @ 5% in respect of supply of RO Plant/system to be installed in warship, in view of Notification No. 01/2017 – CTR dated 28.06.2017 (S. No. 250 & 252).
B. STATEMENT CONTAINING APPLICANT’S INTERPRETATION OF LAW
2.3 Relevant portion of Notification No. 01/2017 – CTR dated 28.06.2017 is reproduced as under – “G.S.R. (E). – In exercise of the powers conferred by sub-section (1) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby notifies the rate of the central tax of-
(i) 2.5 per cent, in respect of goods specified in Schedule I,
(ii) 6 per cent, in respect of goods specified in Schedule II,
(iii) 9 per cent, in respect of goods specified in Schedule III,
(iv), (v), and (vi)………….
appended to this notification (hereinafter referred to as the said Schedules), that shall be levied on intra-State supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said Schedules, falling under the tariff item, sub-heading, heading or chapter, as the case may be, as specified in the corresponding entry in column (2) of the said shedules.
Schedule I – 2.5%
Sr. No. 250 and 252 of Schedule I of Notification No.01/20-17-C.T. (R) dated 28.06.2017 reads as under:
