Classification of goods— In the instant case, the applicant has sought Advance Ruling on the following questions:

1. 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

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

3. Rate of tax applicable for collection made towards supply of materials and labour charges towards repair of fishing vessel of heading 8902

4. Rate of tax on puff insulated ice boxes used by fishermen in fishing vessels for reducing spoilage and maintaining good hygiene.

5. Rate of tax on marine engine coming under HSN Code 8407 supplied to Defence Department for patrol, flood relief and rescue operations.

The applicant has stated that they are a Charitable Society formed under the Travancore-Cochin Literacy Scientific and Charitable Societies Registration Act, 1955. This Society is engaged in undertaking various welfare activities for the poor fisherman in South India for the last forty years. They provide the fishermen necessary fishing requisites at concessional rate.

Held that— 

1. 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 Sl.no.252 of Notification no.01/2017-CT-Rate dt. 28.06.2017 as amended read with SGST Notification II (2)/CTR/532(d-4)/2017, dated:29.06.2017. In respect of spare parts, no ruling is extended.

2. Supply of materials and labour while rendering warranty services during the warranty period, free of cost, does not attract GST separately.

3. Ruling in respect of Rate of tax applicable for collection of charges made towards supply of materials and labour towards repair of fishing vessels, of heading 8902, is not extended.

4. Puff Insulated ice boxes is not a part of fishing vessel falling under Customs Tariff Heading 8902 and hence is not eligible for the concessional rate of GST as per entry at Sl.No.252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017.

5. Ruling in respect of Rate of tax on marine engine coming under HSN Code 8407 supplied to Defence Department for patrol, flood relief and rescue operations is not extended.