CBIC issued clarification on GST rate on laterals /parts of Sprinklers or Drip Irrigation System

Circular No.155/11/2021-GST

CBIC-190354/36/2021-TRU Section-CBEC

Government of India

Ministry of Finance

Department of Revenue

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,

Sub: 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.

  • 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    8424Sprinklers; drip irrigation systems including laterals; mechanical sprayer    6%
  • 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.
  • Difficulty, if any, may be brought to the notice of the Board immediately. Hindi version shall follow.

Yours faithfully,

Patil Sameer Shivajirao

OSD, TRU

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