GST RATE CLARIFIED ON SPRINKLER AND DRIP IRRIGATION PARTS: RAJASTHAN AAR RULES 18% FOR LATERALS

GST RATE CLARIFIED ON SPRINKLER AND DRIP IRRIGATION PARTS: RAJASTHAN AAR RULES 18% FOR LATERALS

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title- Smita Gupta

(GST AAR RAJASTHAN)

Advance Ruling No.RAJ/AAR/2018-19/12

Date of Judgment/Order- 18th August 2018

IMPORTANT PARAGRAPHS

Para No. 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 Il of notification no 01/2017 dated 28.06.2017 as inserted vide notification no 06/2018 dated 25.01.2018. The applicant secks advance ruling over the coverage of various items used in the sprinkers and drip irrigation systems sold individually as well as part of a complete system.
Para No. 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.

Para No. 3. Personal Hearing (PH)
In the matter personal hearing was given to the applicant, Mr. Ranjan Mehta, CA, (Authorised Representative) of applicant appeared for personal hearing on 20.07.2018. During the PH he reiterated that the case may be decided as per submission already made in the application for Advance Ruling. He has sought time to submit statements regarding the explanation of Sprinkler system vis-à-vis Sprinkler which was submitted on a later date. Further, he has requested to decide the case at the earliest.

RULING

As per entry No.195 B of the schedule Il 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%).