In re M/s. Ravi Masand (GST AAR Madhya Pradesh)
The product Agriculture Mechanical Sprayer will merit classification under Chapter Tariff Head (CTH) 8424 of the GST Tariff and with effect from 25.01.2018, the said product would attract GST @12% in terms of Sr.No.195B of Schedule-II to Notification No.01/2017-CT(R) as amended vide Notification No.06/2018-CT(R) dtd. 25.012.018 and concurrent notifications issued by the State Tax authorities.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,MADHYA PRADESH
1. The present application has been filed uis 97 of the Central Goods & Services Tax Act, 2017 and MP Goods & Services Tax Act. 2017 (hereinafter also referred to CGST Act and SGST Act respectively) by M/s. RAVI MASAND (hereinafter referred to as the Applicant) , not registered but desirous of obtaining registration under the Goods & Services Tax.
2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act.
3. BRIEF FACTS OF THE CASE:
3.1 The Applicant is engaged in intend import, trade and/or manufacture/assemble “Agriculture Knapsack Sprayer” both mechanical and hand operated which is used generally in agriculture.
3.2 The “Agriculture Knapsack Sprayer” is classified under chapter sub heading No. 84248200 of the Custom/Excise Tariff Act.GST tariff just mentions HSN of 8424. Now confusion is whether product lies in entry 325 of Sch III or entry 195B of Sch II of Notification no. 1/2017 as amended? IN market most of dealers are charging GST @ 12% except a few who still charging @ 18%.
4. QUESTIONS RAISED BEFORE THE AUTHORITHY:-
The following questions have been posted before the Authority in the application:-
a) Applicant believes that the product “Agriculture Knapsack Sprayer” is classified under HSN 8424 and applicable tax rate is 12%. Details as per Annexure.
b) Relevant extract of Notification No. 1/2017 dated 28-6-17 as amended vide Notification No. 6/2018-Integrated Tax (Rate) dt. 25-01-2018 is enclosed
c) What shall be GST rate on such product? ,
5. CONCERNED OFFICER’S VIEW POINT:
The Concerned Officer Submitted that the product Agriculture Mechanical Sprayer will merit classification under Chapter Head 8424 of the GST Tariff and with effect from 25.01.2018, the said product would attract GST @12% in terms of Sr.No.195B of Schedule-II to Notification No.01/2017-CT(R) as amended vide Notification No.06/2018-CT(R) dtd. 25.12.018 and concurrent notifications issued by the State Tax authorities.
6. RECORD OF PERSONAL HEARING:
6.1 Shree Sunil P Jain, CA of the applicant for personal hearing .He reiterated submissions already made in the application. The Applicant in support of his contention that the product –Agriculture Knapsack Sprayer” is classified under HSN 8424 and applicable tax rate is 12%. gives following argument –
6.2 The Applicant produce relevant extract of Not. 1/2017 as amended
