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2022 (10) TMI 306 - AAR - GSTClassification of goods - rate of GST - HTP (Horizontal Triplex Plunger) kirloskar Power Sprayer (Engine Driven) - applicability of Tariff Heading 8424 in the Notification No. 11/2017-CT (Rate) dated 28-6-2017 as amended vide Not. No. 6/2018-CT (Rate) dated 25-6-208 at Entry No. I95B or not - HELD THAT - The product in question is essentially a Mechanical Appliances operated by petrol engine which is used for spraying liquids as per the requirement. There is no dispute to the classification of product, which even as per the own admission of the applicant would be under Chapter Head 8424 of the GST Tariff. HTP kirloskar Power Sprayer based on the use merits classifiable under HSN 8424 89 90. The CBIC vide Circular No. 113/32/2019-GST has clarified that Mechanical Appliances whether or not hand operated for projecting, dispersing or spraying liquids attracted GST @18% Sr. No. 325 of Schedule III . The applicant goods are Mechanical Appliances which is used in dispersing and spraying the liquids in various fields as per the requirements - It can therefore be concluded that the product HTP kirloskar Power Sprayer merit classification under HSN 8424 89 90 and covered under Entry No. 325 of Schedule-111 of Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 and attract GST tax rate 18%.
Issues Involved:
1. Classification of HTP Kirloskar Power Sprayer (engine-driven) under the GST Tariff. 2. Applicable GST tax rate for HTP Kirloskar Power Sprayer. Issue-wise Detailed Analysis: 1. Classification of HTP Kirloskar Power Sprayer: - The applicant, engaged in manufacturing pump sets and diesel engines, sought an advance ruling on the classification and GST rate applicable to their product, HTP Kirloskar Power Sprayer (engine-driven). - The product is described as a mechanical pumping system used for spraying liquids in agriculture and other fields. - The applicant sources components such as the HTP sprayer and engines from various vendors to manufacture the complete power sprayer set. - The product is marketed as suitable for spraying pesticides and insecticides in various agricultural contexts but is not limited to agricultural use. - The applicant does not maintain data on the specific use of the product by customers. - The authority examined the product details and confirmed that it is a mechanical appliance for spraying liquids, falling under Chapter Heading 8424 of the GST Tariff. - Reference was made to the Harmonised System of Nomenclature (HSN) and the Customs Tariff Act, 1975, which classify mechanical appliances for spraying liquids under HSN 8424. - The specific sub-heading for the product is identified as 8424 89 90, which includes other mechanical appliances not exclusively used in agriculture or horticulture. 2. Applicable GST Tax Rate: - The GST rate for goods classified under HSN 8424 was initially 18% as per Entry No. 325 in Schedule-III of Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017. - Subsequent amendments to the notification clarified that mechanical sprayers, including the applicant's product, are covered under Entry No. 195B in Schedule-II, attracting a reduced GST rate of 12%. - However, the CBIC Circular No. 113/32/2019-GST clarified that all types of mechanical sprayers, whether hand-operated or otherwise, fall under the revised entry and attract a GST rate of 12%. - Despite the general reduction, the specific classification of the applicant's product under HSN 8424 89 90 and its inclusion in Entry No. 325 of Schedule-III means it attracts an 18% GST rate. - The authority concluded that the product 'HTP Kirloskar Power Sprayer' merits classification under HSN 8424 89 90 and is subject to an 18% GST rate (9% CGST + 9% SGST). Ruling: 1. The 8-digit HSN code for the product 'HTP Kirloskar Power Sprayer' is 8424 89 90. 2. The GST tax rate applicable to the product 'HTP Kirloskar Power Sprayer' is 18% (9% CGST + 9% SGST).
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