In re Sagar Aqua Culture Private Limited (GST AAR Gujarat)
M/s. Sagar Aqua Culture Private Limited, registered under GST in Gujarat, sought an advance ruling on the classification of “Paddle Wheel Aerators” (including parts) manufactured and sold by it for exclusive use in aquaculture operations such as fish and shrimp farming. The aerators are used to increase dissolved oxygen levels in aquaculture ponds by circulating water, thereby supporting aquatic life. The components include a motor, floats (HDPE), gearbox, paddles, and shafts.
The applicant sought clarification whether the product is classifiable under HSN 8436, covering “Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery,” attracting 12% GST (and subsequently 5% under Notification No. 9/2025-CT(R) dated 17.09.2025), or under the residual HSN 8479, covering machines with individual functions not specified elsewhere, attracting 18% GST.
The applicant contended that aquaculture is akin to agriculture and relied on the National Policy for Farmers, 2007, which includes fishers within the definition of “farmer.” It also relied on a CESTAT Chennai decision holding Paddle Wheel Aerators to be classifiable under HSN 8436, and on the definition of “agricultural produce” in Notification No. 12/2017-CT(R), which includes rearing of all life forms of animals. Further reliance was placed on a Press Release dated 04.09.2025 issued by the Ministry of Fisheries stating that aerators essential for aquaculture operations would attract 5% GST.
