GST rates on laterals/ parts of sprinklers or Drip Irrigation System- CBIC Clarification
The CBIC issued the Circular No. 155/11/2021-GST dated 17th June 2021 for clarifying on the issue of GST rates on lateral/ parts of sprinklers or Drip Irrigation System. The circular reads as follows:
- 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 28.05.2021.
- The GST rate on Sprinklers or Drip Irrigation System along with their laterals/ parts are governed by Sl. No. ‘195B’ under Schedule II of notification no. 01/2017- central tax (rate), dated 28.06.2017 which has been inserted vide notification no. 6/2018- central tax (rate), dated 25.01.2018 and reads as below:
|
Sl. 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 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.
Source: CBIC Circular No. 155/11/2021 dated 17-06-2021
