Date of order: 01-06-2022

Facts:

• The applicant, M/s. George Maijo Industries Private Limited, is an importer of Yamaha Outboard Motors. These motors are subsequently sold to fishermen, boat builders, defence departments and other agencies to fit in boats used for fishing purposes, patrolling, flood relief, and rescue purposes and also provides repairs and maintenance services for OBMs and sales of spare parts for marine engines. 
• The applicant requested an advance ruling regarding the classification and the rate applicable for sales of OBMsto fishermen and other Government agencies and other purposes including sales done through dealers' authorised service centres and boat builders.

Issue:

• Whether the applicability of GST rate of 5% for outboard motors pertaining to HS code 8407 and its spare parts as per Entry In Schedule I, S1.No.252 of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017; that GST rate of 28% shown in Schedule IV S1. No.114 is applicable for sales made by the applicant.

Order:

• The authorities observed that the Outboard motors imported by the applicant are classified under Customs Tariff Heading 8407 21 00 - Outboard motors - Marine Propulsion engines - Spark-ignition reciprocating or rotary internal combustion piston engines and attract GST at the rate of 28% as per entry at Sl. No. 114 of Schedule IV of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017.
• The Out Board Motors and its spare parts supplied for use in vessels falling under Customs Tariff Heading 8902 shall attract GST at the rate of 5% [2.5%-CGST + 2.5% SGST] as per entry at S1.No. 252 of Schedule I of Notification No.01/20 17 Central Tax (Rate) dated 28.06.2017. If it is supplied for use other than as parts of goods of headings 8901, 8902, 8904, 8905, 8906 and 8907 as stated above, GST at the rate applicable under the respective Customs Tariff Headings in which they are classified will apply.