In re Blue Rays Marine LLP (GST AAR Kerala)
Goods and Services Tax (GST) Authority for Advance Rulings (AAR) in Kerala, in the case of In re Blue Rays Marine LLP, has clarified the applicable GST rates for marine engines, their spare parts, and repair and maintenance services for fishing vessels and other specified ships. Blue Rays Marine LLP, a business engaged in the wholesale and retail of outboard engines and spare parts for fishing and fishery processing vessels, sought clarity on the taxability of these items, particularly when supplied for fishing activities.
The AAR’s ruling confirmed that marine engines (Customs Tariff Heading 8407 and 8408) and their spare parts (e.g., Gear Box, Carburetor, Propeller) supplied for use as parts of fishing vessels (Customs Tariff Heading 8902) will attract a Goods and Services Tax (GST) rate of 5% (2.5% CGST + 2.5% SGST). This is in accordance with Serial No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated June 28, 2017, and further supported by CBIC Circular No. 52/26/2018-GST dated August 9, 2018. The AAR emphasized that this concessional rate applies specifically when these items are intended for use as parts of fishing vessels or other vessels falling under headings 8901, 8902, 8904, 8905, 8906, and 8907. If supplied for other purposes, the higher GST rate applicable under their respective Customs Tariff Headings (e.g., 28% for marine engines under 8407) would apply.
