12% GST applicable on Manufacturing feeder, Drying machine, Cleaning & Grading Machine, Pre-stem remover and 18% GST on Automatic Weighing Machine

In M/s. Wave Colour Techniks, [Advance Ruling No. KAR ADRG 29/2021 decided on June 07, 2021], M/s. Wave Colour Techniks (Applicants) has sought an advance ruling on the GST applicable on the machines namely Automatic Feeder with Breaker, Pre-washer Machine, Drying Machine, Cleaning, and Grading Machine, Pre-stem remover, Riffle Washer, Stem Remover, Spin Dryer, Automatic Weighing Machine.

3D GST income tax

The Hon’ble Karnataka Authority for Advance Ruling (“KAAR”) classified the machines under Notification No. 1/2017. Central Tax (Rate) dated June 28, 2017 (“Goods Rate Notification”) under HSN 8423 providing that the machinery manufactured and sold by the Applicants like Automatic Feeder with Breaker, Drying machine, Cleaning and Grading Machine, and Pre-stem remover are taxable at 6% under the CGST Act, 2017 and 6% under the KGST Act, 2017.

Furthermore, the Automatic Weighing Machine manufactured and sold by the applicant is liable to tax at 9% under the CGST Act, 2017 and 9% under the KGST Act, 2017.

Therefore, 12% tax is to be levied on Manufacturing feeder, Drying machine, Cleaning and Grading Machine and Pre-stem remover and 18% should be levied on Automatic Weighing Machine.

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DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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