prpri GST rate on laterals/parts of Sprinklers or Drip Irrigation System GST rate on laterals/parts of Sprinklers or Drip Irrigation System

Laterals/parts to be used solely or principally with sprinklers or drip irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, 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.

CBIC-190354/36/2021-TRU Section-CBEC
Government of India
Ministry of Finance
(Department of Revenue)

North Block, New Delhi

Circular No. 155/11/2021-GST | Dated the 17th June, 2021 

To,

Principal Chief Commissioners/ Principal Directors General, Chief Commissioners/ Directors General,
Principal Commissioners/ Commissioners of GST and Central Tax (AII),

Madam/Sir,

Subject: Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System–regarding.

Representations have been received seeking clarification regarding GST rate on parts of Sprinklers or Drip Irrigation System, when they are supplied separately ( i.e. not along with entire sprinklers or drip irrigation system). This issue was examined in the 43rd meeting of GST Council held on the 28th May, 2021.

Applicability of GST rate on laterals parts of Sprinklers or Drip irrigation system

2. The GST rate on Sprinklers or Drip Irrigation System along with their laterals/parts are governed by S.No. `195B’ under Schedule II of notification No. 1/2017- Central Tax (Rate), dated 28th June, 2017 which has been inserted vide notification No. 6/2018- Central Tax (Rate), dated 25th January, 2018 and reads as below:

S. No. Chapter Heading/
Sub-heading/Tariff
Item
Description of Goods CGST
rate
195B 8424 Sprinklers; drip irrigation systems including laterals; mechanical sprayer 6%

3. The matter is examined. The intention of this entry has been to cover laterals (pipes to be used solely with with sprinklers/drip irrigation system) and such parts that are suitable for use solely or principally with ‘sprinklers or drip irrigation system’, as classifiable under heading 8424 as per Note 2 (b) to Section XVI to the HSN. Hence, laterals/parts to be used solely or principally with sprinklers or drip irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, 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.

4. Difficulty, if any, may be brought to the notice of the Board immediately. Hindi version shall follow.

Yours faithfully
(Patil Sameer Shivajirao)
OSD, TRU
Email: sameer.sp@gov.in
Tel: 011 2309 5543

7 GST Circulars issued by CBIC on 17th June 2021 as per decisions of 43rd meeting of GST Council held on the 28th May, 2021

Title Notification No. Date
GST rate on laterals/parts of Sprinklers or Drip Irrigation System Circular No. 155/11/2021-GST 17/06/2021
No GST on guaranteeing of loans by Govt for their undertaking or PSU Circular No. 154/10/2021-GST 17/06/2021
GST on milling of wheat into flour or paddy into rice for distribution by Govt Circular No. 153/09/2021-GST 17/06/2021
GST on works contract service by way of construction of rope way Circular No. 152/08/2021-GST 17/06/2021
GST on services provided by Central or State Boards Circular No. 151/07/2021-GST 17/06/2021
GST on annuities paid for construction of road Circular No.150/06/2021-GST 17/06/2021
No GST on supply of food in Anganwadis and Schools Circular No. 149/1/2021-GST 17/06/2021

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