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 | 8424 | Sprinklers; 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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