The Gujarat Authority of Advance Ruling (AAR) in the case of M/s Shakti Marine Electric Corporation on Advance Ruling No. GUJ/GAAR/R/2022/45 dated 28.09.2022, 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.

The AAR has 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.

In this case, the applicant is an authorised wholesale dealer for the supply of Combined Wire Rope.

The applicant has submitted that Combined Wire Rope has got wide usage in General Engineering. in fishing vessels and also in general vessels. The applicant is charging 18% GST on the supply made to their customers. Further, submitted that combination wire ropes with steel core, stainless steel (red tracer yam), and PP-coated combination ropes are used in trawl fishing all over the world. These ropes are also known as “Taifun Ropes.”

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.