Wire rope notpart of afishing vessel, 18% GST is applicable: Gujarat AAR
The Gujarat Authority of Advance Ruling (AAR) has ruled that combined wire rope is not a part of a fishing vessel but it
Wire rope notpart of afishing vessel, 18% GST is applicable: Gujarat AAR The Gujarat Authority of Advance Ruling (AAR) has ruled that combined wire rope is not a part of a fishing vessel but it is used to tie the fishing net with the vessel and 18% GST is applicable. It observed that goods whenever used as a part of a fishing vessel or vessel attract 5% GST, otherwise, they attract...
Wire rope notpart of afishing vessel, 18% GST is applicable: Gujarat AAR
The Gujarat Authority of Advance Ruling (AAR) has ruled that combined wire rope is not a part of a fishing vessel but it is used to tie the fishing net with the vessel and 18% GST is applicable. It observed that goods whenever used as a part of a fishing vessel or vessel attract 5% GST, otherwise, they attract the applicable GST rate of the goods.
The application was filed by Shakti Marine Electric Corporation, an authorized wholesale dealer for the supply of Combined Wire Rope.
The applicant submitted that Combined Wire Rope has got wide usage in General Engineering in fishing vessels and also in general vessels. The applicant charged 18% GST on the supply made to their customers.
It was further submitted that combination wire ropes with steel core, stainless steel (red tracer yam), and PP-coated combination ropes (also known as "Taifun Ropes") are used in trawl fishing all over the world.
The applicant has sought an advance ruling on the issue of whether the GST rate of 5% is applicable in the case of the 'Combined Wire Rope' used as a part of a fishing vessel.
The AAR has ruled that combined wire rope is not a part of a fishing vessel but it is used to tie the fishing net to the vessel. Therefore, the combined wire rope is not eligible to be taxed at the rate of 5% GST.