Clarification regarding GST rate on laterals/ parts of sprinklers or Drip Irrigation System
CBIC has issued Circular No. 155/11/2021-GST dated 17th June, 2021 to clarify the GST rates on sprinklers or Drip Irrigation System along with their laterals/ parts. The Circular reads as follows:
- 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 intention of this entry has been to cover laterals (pipes to be used solely 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 @ 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.
