Home Case Index All Cases GST GST + AAR GST - 2018 (11) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 282 - AAR - GSTRate of tax - Marine propellers, Rudder set, Stern tube set, Propellers shaft, MS shaft for couplings - classification of parts of fishing - replacement of parts during warranty period constitute supply under GST or not - input tax credit on purchase of raw materials. Rate of tax - Marine propellers, Rudder set, Stern tube set, Propellers shaft, MS shaft for couplings - Held that:- As per case of SRI. DHARSAK. V.P. AND SARASWATHI METAL INDUSTRIES [2018 (7) TMI 142 - AUTHORITY FOR ADVANCE RULING, KERALA] ruling issued that commodities such as Marine Propellers, rudder set, stern tube set, propeller shaft and MS shaft for couplings used as a part of fishing /floating vessels would come under entry 252 of 1st schedule and taxable @5% GST. However there is no clarity on the tax rate applicable to the parts shipping vessels as the raw materials attract 18% tax. Classification of parts of fishing - Held that:- As there is specific inclusion of parts of goods covered under HSN 8902, under 15t Schedule, the general tax rate applicable to machinery parts vide HSN 8487 has no applicability, if the vessels are used for fishing purpose. Whether replacement of parts during warranty period constitute supply under GST or not? - Held that:- The replacement of parts during warranty period is a free supply. Warranty is a written guarantee, issued to the purchaser of goods by its manufacturer, promising to repair or replace it if necessary within a specified period of time. If the goods are supplied with warranty, the consideration received as part of supply includes the consideration for “the promise to repair or replace”. Since the parts are provided to a customer without consideration under warranty no GST is chargeable on such replacement. Input tax credit on purchase of raw materials - Held that:- Even though the raw materials consumed are attracting higher tax rate than the finished products or parts, input tax paid is eligible to avail as input tax credit subject to a condition that such goods or services or both are used or intended to be used in the course or furtherance of his business - As per Section 54 (3) of the GST Law, where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies, un-utilized input tax credit at the end of any tax period can be claimed as refund except input tax paid under IGST. Ruling:- The tax rate of Marine propellers, Rudder set, Stern tube set, Propellers shaft, MS shaft for couplings used as part of fishing vessels, factory ships and other vessels for processing or preserving fishery products are taxable @5% GST. All parts of fishing / floating vessels come under the HSN Code 8902 are taxable @5% under Serial No.252 of 1st Schedule.
|