RUBBER PARTS FOR IRRIGATION SYSTEMS CLASSIFIABLE UNDER HEADING 4016- GST @18%

RUBBER PARTS FOR IRRIGATION SYSTEMS CLASSIFIABLE UNDER HEADING 4016- GST @18%

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title- M/s Laxmi Rubber Industries

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2019-20/02

Date of Judgment/Order- 16th April 2019

IMPORTANT PARAGRAPHS

Para No. 2. Questions On Which The Advance Ruling is Sought

Considering Note No. 1, 2, 3 of Section XVI and Note No. 2 of Chapter 84, whether based on rules of interpretation of HS codes, the items made of vulcanized rubber like Rubber Ring/ GASKET/ Seal, Rubber Foot Batten Washer and Rubber Grommets falling under the heading 4016 are taxable as specific rubber items having a GST rate of 18% or as components of sprinkler/ Drip irrigation system having a tax rate of 12% under heading 84249000. It is pertinent to note that these items are designed and shaped that these can be used only in sprinkler/ drip irrigation equipment and have no other use.

Para No. 5. Findings, Analysis & Conclusion:

(f) If individual rubber parts of the Sprinkler Irrigation System/ drip irrigation system are supplied separately viz. Rubber Ring/ Gasket/ Seal, Rubber Foot Batten Washer and Rubber Grommets, will not be covered under Entry No. 195B of Schedule 11 of Notification No.01/2017 dated 28.06.2017. Even otherwise also rubber parts will be classifiable under chapter heading 4016.

(g) The rubber parts supplied by the applicant viz. Rubber Ring/ Gasket/ Seal, Rubber Foot Batten Washer and Rubber Grommets are classifiable under Chapter Heading 4016 and attract GST @ 18% (CGST 9% + SGST 9%).

RULING

In view of the foregoing, we rule as follows:-

The goods manufactured and supplied by the applicant viz. Rubber Ring/ Gasket/ Seal, Rubber Foot Batten Washer and Rubber Grommets are classifiable under Chapter Heading 4016 and attract GST @ 18% (CGST 9% + SGST 9%).