Case Law Details
In re Kriti Industries (India) Limited (GST AAR Madhya Pradesh)
Applicant believes that the product ‘sprinkler system, drip irrigation system including laterals, P.V.C. Pipes, other components and accessories’ is classified under HSN 8424 and applicable tax rate is 12%, details as per the Notification No.01/2017- Central Tax (Rate) dated 28.06.2017 . The entry No. 195B was inserted vide Notification No.06/2018 Central Tax(rate) dated 25.01.2018. What shall be GST rate on such products system falling under HSN 8424 attracting CGST @6% and SGST @6% or Not?
as per the clarification circular No. 155/11/2021-GST dated 17.06.2021 issued by The CBIC, New Delhi we hold that the “Sprinklers; drip irrigation system including laterals,PVC Pipes and other component and accessories” is classifiable under chapter heading /tariff item/CTH (Custom Tariff Heading) No. 8424 and under entry No. 195B of Schedule II of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 and corresponding notification under SGST as amended, shall attract GST rate I 2% (6% CGST and 6% SGST). Further, laterals/parts used solely or principally with sprinklers or drip irrigation system, which arc classifiable under heading 8424, would attract a GST of 12% (6% CGST and 6% SGST), even if supplied separately. However, any part of general use, which gets classified in a heading other than 8424, in terms of Section Note and Chapter Notes to HSN, shall attract GST as applicable to the respective heading.”
Ruling Been rectified vide Order No. 11/2021 dated 01/09/2021 and can be read at below link:-
GST on sprinkler/drip irrigation system including laterals, P.V.C. Pipe- AAR Rectifies its Ruling
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