North Block, New Delhi,
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,
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.
2. 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% |
3. 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.
4. Difficulty, if any, may be brought to the notice of the Board immediately. Hindi version shall follow.
Yours faithfully
(Patil Sameer Shivajirao)
OSD, TRU
Email: sameer.sp@gov.in
Tel: 011 2309 5543
For full detail click the link below :
https://www.dropbox.com/s/2m09rrkti8l3d2i/Circular_Refund_155.pdf?dl=0