In re Smmarains Advances Gear Boxes India Private Limited (GST AAR Kerala)
Smmarains Advances Gear Boxes India Private Limited, a company dealing in marine engines, gearboxes, and related spares, sought an advance ruling from the Kerala AAR concerning the applicable GST rates on its products and services. The company imports marine engines, spares, and gearboxes, distributing them to the fishing community and boat builders. They also provide maintenance and repair services for these components. The core of their queries revolved around whether a concessional GST rate of 5% applies to marine engines, their spares, and marine gearboxes when supplied for use in fishing vessels, and if the same 5% rate applies to their maintenance and repair services, as well as marine engine oil.
The AAR clarified that marine engines (HSN 8408), their spares (HSN 8409), and marine gearboxes (HSN 8483) will attract a concessional GST rate of 5% if they are supplied specifically for use as parts of fishing vessels (classified under Customs Tariff Heading 8902, or other specified headings like 8901, 8904-8907). This ruling aligns with Serial No. 252 of Schedule I of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 and is further supported by CBIC Circular No. 52/26/2018-GST. If these items are supplied for any other use, their standard GST rates based on their respective HSN classifications will apply. Regarding maintenance and repair services for marine engines, gear, and other parts of fishing boats, the AAR confirmed that a 5% GST rate is applicable from June 2, 2021, following Notification No. 02/2021-Central Tax (Rate). This applies to composite supplies where repair/maintenance is the principal service, simplifying the tax treatment after the amendment.
