The Maharashtra Authority of Advance Ruling (AAR) has ruled that the 18% GST on supply of Reverse Osmosis Plant/system (RO Plant/system) to Indian Navy/Indian Coast Guard in normal course.
The applicant, M/s Rochem Separation Systems India Private Limited is engaged in supply of Reverse Osmosis Plant (RO Plant/System) classified under Chapter Heading 8421 as per GST Tariff. The applicant has been supplying the subject goods to various buyers by charging GST @ 18%. The applicant has been informed by the Indian Naval Department that, GST should be charged @ 5% in respect of supply of RO Plant/system to be installed in warship, in view of Notification No.01/2017 dated 28.06.2017.
The applicant has sought the advance ruling on the issue as to the applicable rate of GST on supply of Reverse Osmosis Plant/system (RO Plant/system) to Indian Navy/Indian Coast Guard in normal course and the applicable rate of GST on supply of RO Plant/system (Reverse Osmosis Plant) to the Indian Navy/Coast Guard which would be installed in/on a warship.
The coram of Rajiv Magoo and T.R.Ramnani noted that the R.O. Plant/system is to be installed on warship for the purpose of purifying water. It does not contribute in functionality of the warship. Merely because RO Plant is installed in the warship, it does not become part of it. As per the applicant, the goods (i.e, RO Plant/system) supplied by it falls under S. No. 322 of Schedule III of Notification No.01/2017-CTR dated 28.06.2017 attracting 18% CGST, which the applicant has already been charging accordingly.
The AAR ruled that 18% GST is applicable on supply of Reverse Osmosis Plant/system (RO Plant/system) to Indian Navy/Indian Coast Guard in normal course and on supply of RO Plant/system (Reverse Osmosis Plant) to the Indian Navy/Coast Guard which would be installed in/on a warship.
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