Summary
- The Maharashtra Authority for Advance Ruling has determined that marine propulsion engines and their spare parts can qualify for a 5% GST rate if supplied as parts of specified vessels, contingent on proof of intended end use.
- This ruling applies to engines classified under HSN 8407 and 8408, and spare parts under HSN 8409, provided they are linked to vessels under headings 8901-8907.
- The Authority emphasized that mere classification as marine engines or supply to specific entities does not guarantee the concessional rate; verifiable documentary evidence is essential.
- This decision highlights the importance of establishing end use for GST concessions, potentially impacting suppliers in the marine industry significantly.
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