MDEs and parts thereof are taxable @ 5% if supplied exclusively to shipyard and Indian Navy

Last updated: 03 August 2021

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This ruling clarifies that Marine Diesel Engines (MDEs) and their parts are taxable at a 5% IGST rate (2.5% CGST and 2.5% SGST) when supplied exclusively and directly to shipyards or the Indian Navy for use in manufacturing ships, vessels, boats, or floating structures. The ruling specifies that these engines and parts are considered 'parts of goods' under heading 8901, 8902, 8904 to 8907, provided they are used in the manufacture of items falling under these headings. Supplies for other purposes or to different recipients will not qualify for this reduced rate.

Court :
Maharashtra AAR

Brief :
In M/s. MAN Energy Solutions India Pvt. Ltd. [GST-ARA, Application No. 56 dated October 17, 2019], M/s. MAN Energy Solutions India Pvt. Ltd. ('the Applicant') has sought an advance ruling on, whether the supply of marine diesel engines ('MDEs') and parts exclusively and directly to shipyards or Indian Navy by the Applicant for use in manufacture of ships, vessels, boats, floating structures are to be classified under Sr. No. 252 of Notification No. 01/2017-Central Tax (Rate), dated June 28, 2017

Citation :
GST-ARA, Application No. 56 dated October 17, 2019

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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