GST not leviable on supply incurred during warranty period, free of cost

In re South Indian Federation of Fishermen Societies (GST AAR Tamilnadu)

Q1.Rate of tax on Marine Engines coming under HSN Code 8407 and its spare parts exclusively used as part of fishing vessel of heading 8902?

A1. Rate of tax on Marine Engines coming under HSN Code 8407, when used as part of boats of HS code 8902 (being used as part of fishing vessels) is 5% GST under SI.no.252 of Notification no.01/2017 CT-Rate dt. 28.06.2017 as amended read with SGST Notification ll(2)/CTR/532(d-4)/2017, dated: 29.06.2017. In respect of spare parts, no ruling is extended for the reason stated in para 7.4 above.

Q2. Whether GST leviable on supply of materials and labour charges incurred during the warranty period, free of cost?

A2. Supply of materials and labour while rendering warranty services during the warranty period, free of cost, does not attract GST separately in view of discussions in para 8.1.

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