In re Shakti Marine Electric Corporation (GST AAR Gujarat)
Whether, GST Rate of 5% in terms of Sr.No.252 of Schedule-I of Notification No. 1/2017-CTR, corresponding notification issued by Gujarat State and Notification No. 1/2017-ITR is applicable in the case ‘Combined Wire Rope’ used as a part of Fishing Vessel?
Goods whenever used as a parts of fishing vessel/vessel it attract 5% GST as per entry No. 252 of Notification No. 1/2017-Central Tax (Rate) dated 28-6-2017 otherwise it will attract applicable GST rate of the goods.
In the instant case Combined Wire Rope is not a part of fishing vessel but it is used to tie the fishing net with the vessel.
Combined Wire Rope is not used as a part of fishing vessel and the impugned goods does not cover under entry No.252 of Schedule-I of Notification No. 1/2017-Central Tax (Rate) dated 28-06-2017 as amended and is not eligible to GST @ 5%{ CGST 2.5% + SGST 2.5% and IGST 5%}.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT
Brief Facts
M/s. Shakti Marine Electric Corporation is an authorized wholesale dealer for supply of Combined Wire Rope manufactured by M/s Kadambari Steel Wire Rope Pvt. Ltd and M/s Usha Martin India Limited
2. The applicant has submitted that Combined Wire Rope [Chapter Heading 73121 has got wide usage in General Engineering. Fishing Vessels and also in General Vessels. Presently the applicant is charging 18% GST on the supply made to their Customers. The applicant is mainly operating for supply of Combined Wire Rope in the region of Rajkot. Veraval and Saurashtra having heavy cluster of fishing activities at coastal area like Veraval. Mangrol and District of Kutch.
3. The applicant submits that Customers/Clientele is mainly having Fishing Vessels/Boat and is engaged in fishing activities. The Combined Wire Rope having HSC code 7312 and specification 14mm diameter and construction 6xl9SCF supplied to those Customers for its usage primarily and solely as a part of Fishing Vessels having HSN code 8902.
4. The applicant has submitted that Combination Wire Rope with steel core, stainless steel (red tracer yam) PP-coated combination ropes are used by in trawl fishing all over the world. These ropes also are known as “Taifun Ropes”.
5. The applicant has submitted that the goods of any chapter heading used as a parts of Fishing Vessels having chapter heading 8902 are eligible for 2.5% CGST as per Sr.No.252 of Schedule -I of Notification No. 1/2017-Central Tax (Rate).2.5% SGST vide corresponding Notification issued by Gujarat State Government and 5% IGST Notification No.1/2017-ITR. The said serial number is reproduced as under.
