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The Submarine Fired Decoy System (SFDS) proposed to be supplied by the applicant is classifiable under HSN 9306 attracting tax rate of 18%.

Authority for Advance Ruling — Taxability on Supply of Submarine Fired Decoy System --– The applicant is a Government of India Enterprise under the Ministry of Defence, established to be a manufacturing base for guided missiles and allied Defence equipment. The applicant sought an advance ruling as to whether the Submarine Fired Decoy System (SFDS) supplied by the applicant is classifiable as ‘parts of submarine’ under Chapter Heading 8906 and, therefore, attract a GST rate of five (5%) by virtue of entry no. 252 of Schedule I in Notification No. 1/2017-Integrated Tax (Rate) dated 28.07.2017. Held that:- The Hon’ble Authority for Advance Ruling held that the proposed supply falls under SI.No.434 under Chapter Heading 9306 under Schedule III of Notification No. 1/2017 – CTR dt: 28.06.2017 attracting tax rate of 18% as amended from time to time.
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