In re M/s Smita Gupta (Viney Irrigation) (GST AAR Rajasthan)
Issue- Classification of any goods or services or both; Whether the laterals such as clamps, bends, tee, coupler ,bush which form part of an Sprinkler System or Drip Irrigation System shall form part of Entry No. 195B of schedule II of Notification No. 01/2017 dated 28.06.2017 and will it be taxed at 12%
As per entry No. 195B of the schedule II of Notification No. 1/2017 – CT (Rate) dated 28-6-2017, as amended by Notification No. 06/2018 – CT (Rate) dated 25-1-2018, Laterals of sprinklers such as clamps, bends, tee, coupler, bush, foot button, latch, clamp, riser pipe, socket etc. are not covered to attract GST 12% (CGST 6% + SGST 6%) but instead will attract GST at 18% (CGST 9% + SGST 9%).
Laterals of drip irrigation system will attract GST 12% (CGST 6% + SGST 6%).
FULL TEXT OF ADVANCE RULING
Note: Under Section 100 of the RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by the applicant is fit to pronounce advance ruling as it falls under ambit of the Section 97(2) (a), it is given as under:
(a) Classification of any goods or services or both;
Further, the applicant being a registered person, GSTIN is 08AEOPG3970K1Z1, as per the declaration given by him in Form ARA-01, the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the application is ‘admitted’ to pronounce advance ruling.
1. SUBMISSION OF THE APPLICANT:
1. The applicant Smita Gupta (M/s Vinay Irrigation) (here in after referred to as ‘Applicant’) has sought an Advance Ruling on the Entry No.195B of Schedule II of notification no 01/2017 dated 28.06.2017 as inserted vide notification no 06/2018 dated 25.01.2018.
The applicant seeks advance ruling over the coverage of various items used in the sprinklers and drip irrigation systems sold individually as well as part of a complete system.
2. The applicant is engaged in manufacturing and trading of various plastic and metallic items which are used in agricultural irrigation. These items are Adopter, coupler, Tee, Clamps, Foot button, Ripit, Nozzle etc. All these items are used as part of sprinkler or Drip irrigation system depending upon the requirement of each farmer. These items are supplied as part of a complete sprinkler or drip irrigation system and also as spares separately as and when required by farmer for replacement.
3. All above items are used by the farmers and most of the items do not have an independent use. They are used only as part of Sprinkler or Drip irrigation system for the purpose of irrigation only.
2. Taxability
The applicant stated that these items fall under Chapter 84 of the Customs Tariff Act, 1975 under heading 8424 which reads as follows:-
MECHANICAL APPLIANCES (WHETHER OR NOT HAND OPERATED) FOR PROJECTING, DISPERSING OR SPRAYING LIQUIDS OR POWDERS; FIRE EXTINGUISHERS, WHETHER OR NOT CHARGED; SPRAY GUNS AND SIMILAR APPLIANCES; STEAM OR SAND BLASTING MACHINES AND SIMILAR JET PROJECTING MACHINES.
These items are used in the process of irrigation by means of which water is dispersed or sprayed on to the plants.
For heading 8424 there are 3 entries of taxation in notification no 01/2017 Central Tax (Rate) dated 28.06.2017, as amended from time to time; all of them are given below:-
ScheduleII-6%
