2019 (2) TMI 1006 - AAR - GST

Classification of goods - Broom Stick made of plastics - Sprayers made of Plastics - applicable rate of tax - Held that - Broom stick is a cleaning tool consisting of usually stiff fibres (made of materials such as plastic) attached to and roughly parallel to a cylindrical handle The broomstick is thus a variety of brush with a long handle. It is commonly used in combination with a dustpan for cleaning floors etc. - it is very much clear from the reading of the main heading that the major heading for the classification of the plastics broom-stick is 9603. Since the product in question i.e. Broom-Sticks is made from plastics hence it is very much clear that it should be classified as Brooms other than brooms consisting of twigs or other vegetable materials bound together with or without handle. Thus brooms made from plastics are other than brooms classifiable under heading 96031000 - the correct classification of the Plastic Broom-Stick is under heading 96032900 and classifiable as Others - the product Plastics Broom-Stick is eligible for concessional rate of tax vide Notification No. 1/2017-CT(rate) dtd 28.06.2017 i.e. 5% IGST or 2.5% CGST 2.5 UTGST. Classification of the product - Sprayers - Held that - Sprayer is a device used to spray a liquid. The sprayers are commonly used for projection of water weed killers crop performance materials pest maintenance chemicals as well as manufacturing and production line ingredients. In agriculture a sprayer is a piece of equipment that is used to apply herbicides pesticides and fertilizers on agricultural crops. Hence we are of the view that Sprayers are different from irrigation systems - the product of the applicant is a Portable Sprayers . We find that the product Portable Sprayers under the HSN Code 84244100 is available. Hence Sprayers are correctly classifiable under the HSN Code 84244100. The correct rate of GST for the product in question is (9% CGST 9% UTGST) 18%.

Summary

Issues:
1. Appeal process against Advance Ruling
2. Correct classification and tax rate for Broom Stick made of plastics
3. Correct classification and tax rate for Sprayers made of plastics

Analysis:

1. Appeal Process against Advance Ruling:
- Any aggrieved person can appeal against the Advance Ruling before the Appellate Authority for Advance Ruling within 30 days of the order.
- The appeal must be filed in the prescribed form and accompanied by the required fee as per the CGST Rules, 2017.

2. Broom Stick Classification and Tax Rate:
- M/s. Aristoplast Products Pvt. Ltd. applied for an Advance Ruling on the correct classification of Broom Stick made of plastics.
- The jurisdictional authority confirmed the HSN code for Broom Sticks as 9603 with an 18% GST rate.
- The applicant argued for a lower tax rate based on their product being made of plastics.
- The Advance Ruling Authority classified the Plastic Broom-Stick under HSN code 96032900, eligible for a concessional tax rate of 5% IGST or 2.5% CGST + 2.5% UTGST.

3. Sprayers Classification and Tax Rate:
- Another application was made for the correct classification of Sprayers made of plastics.
- The applicant described the Sprayers as mechanical and hand-operated, fitted with a plastic nozzle for spraying liquid.
- The authority determined the correct classification under HSN code 84244100 for "Portable Sprayers" with an 18% GST rate.
- The argument for a lower tax rate based on irrigation systems was dismissed as the product did not fall under that category.

Conclusion:
- The Advance Ruling pronounced the correct classifications and tax rates for both the Plastic Broom-Sticks and Portable Sprayers made by M/s. Aristoplast Products Pvt. Ltd.
- The cases were disposed of accordingly, providing clarity on the applicable rates for these products under the GST regime.