Classification of goods— In the instant case, the applicant submits that it supplies Marine engines used by fisherman in fishing boats of HSN 8902.

The applicant submitted that Marine engine fall under HSN 8402 and 8407and taxed at the rate of 28%. Further, applicant submitted that vide Circular No. 52/26/201-GST dated 9-8-18, it is clarified that supply of marine engine falling under HSN 8408 for fishing vessel attracts 5% GST.

Question on which Advance Ruling sought—

What GST rate to be charged on Marine engine falling under HSN 8402 and 8407, whether 28% or 5% (As per circular No. 52/26/201-GST dated 9-8-18).

The fishing vessels are classifiable under heading 8902, and attract GST @ 5%, as per S. No. 247 of Schedule-I of the notification No. 1/2017-Central Tax (rate), dated 28-6-2017. Further, parts of goods of heading 8902, falling under any chapter also attracts GST rate of 5%, vide S. No. 252 of Schedule I of the said notification. The Marine engine for fishing vessel falling under Tariff item 8408 1093 of the Customs Tariff Act, 1975 would attract a GST rate of 5% by virtue of S. No. 252 of Schedule-I of the notification No. 1/2017-Central Tax (Rate), dated 28-6-2017.

Held that— The GST rate on Marine engines is determinable on case to case basis.  In cases where the applicant has conducted due diligence with KYC norms of customer such as customer in possession of certificate of registry of fishing boat/ certificate of licence of fishing boat, in such cases marine engine supplied will be part of fishing vessel, and thereby GST rate is 5%.  In other cases, GST rate is 28%.