In re Dharsak. V.P. Saraswathi Metal Industries (GST AAR Kerala)
Commodities such as marine propellers, rudder set, stern tube set, propeller shaft and M.S. Shaft for couplings used as a part of fishing / floating vessels would come under the Entry 252 of Schedule 1 of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 and State Notification 360/2017 dated 30.06.2017 and hence taxable @ 5% [SGST – 2.5%; CGST – 2.5%].
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KERALA
ORDER No. CT/5496/18-C3 DATED 29/05/2018
1. Dharsak. V.P., Saraswathi Metal Industries, Alappuzha, manufacturer of marine propeller, rudder set, stern tube set, propeller shaft and M.S. Shaft for couplings, has preferred an application for Advance Ruling on the rate of tax of the above commodities used in fishing / floating vessels.
2. The applicant has argued that all the above products are used in fishing/floating vessels. Since the products manufactured by the unit are mainly used for the purpose of fishing and other allied activities, the applicant is of the opinion that the rate of tax applicable to the above products is 5% as per entry 247 and 252 of Schedule 1 of the Central Notification 1/17.
3. The applicant was heard in the matter and the contentions raised were examined. On the basis of the facts disclosed in the application and the submissions made at the time of personal hearing, it was decided to admit the application.
4. As per the HSN specified in the application, the rate of tax applicable to the above commodities is 18%. Relevant entries are extracted below:
