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2021 (12) TMI 32 - AAR - GSTSeeking rectification of mistake in the original ruling - error apparent on the face of record or not - Classification of goods - sprinkler system. drip irrigation system including laterals. P.V.C. Pipes. other components and accessories - to be classified under HSN 8424 or not - rate of tax - N/N. 1/2017-Central Tax (Rate). dated 28-6-2017 - HELD THAT - In respect of the question asked as per the clarification circular No.155/11/2021-GST dated 17.06.2021 issued by The CBIC. New Delhi we hold that the Sprinklers drip irrigation system including laterals (pipes to he used solely with sprinklers/drip irrigation system)/parts to he used solely or principally with sprinklers or irrigation system - as classifiable under chapter heading /tariff item No. 8424 and under entry No.195B of Schedule II of Notification No. 01/2017 Central Tax(Rate) dated 28.06.2017 and corresponding notification under SGST as amended, shall attract GST rate 12% (6% CGST and 6% SGST), evan 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. The original ruling is rectified.
Issues: Classification of products under HSN 8424 and applicable GST rate
Analysis: 1. Filing of Application (Issue 1): The application was filed under section 97 of the Central Goods and Services Act, 2017 and MP Goods and Services Act, 2017 by M/s KRITI INDUSTRIES (INDIA) LIMITED, seeking clarification on the classification and applicable tax rate for their products. 2. Provisions of CGST and MPGST Acts (Issue 2): The Authority noted that the provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, a reference to the CGST Act would also include the same provision under the MPGST Act for the purpose of this Advance Ruling. 3. Brief Facts of the Case (Issue 3): M/s. KRITI INDUSTRIES (INDIA) LIMITED is engaged in the manufacture of sprinkler systems, drip irrigation systems, PVC pipes, and other components. The company sought clarification on the classification of their products under HSN 8424 and the applicable GST rate. 4. Question Raised (Issue 4): The applicant questioned the classification and GST rate applicable to products falling under HSN 8424, specifically referring to notification No. 1/2017-Central Tax (Rate) and entry No. 195B inserted vide notification No. 6/2018-Central Tax (Rate). 5. Original Order (Issue 5): The Authority, after considering various submissions, ruled that the products in question are classifiable under chapter heading/tariff item No. 8424 and attract a GST rate of 12% (6% CGST and 6% SGST). The ruling was based on relevant notifications and circulars issued by the CBIC, New Delhi. 6. Rectification of Order (Issue 6): A typographical error was identified in the original order, leading to a rectification process. The rectified ruling reiterated the classification of products under HSN 8424 and maintained the GST rate of 12% (6% CGST and 6% SGST). The rectification was made to ensure accuracy and clarity in the ruling. 7. Final Ruling (Issue 7): The rectified ruling clarified the classification and GST rate for the products in question, ensuring compliance with the provisions of the GST Act. The ruling remained valid subject to the specified provisions under the Act unless declared void under relevant sections. This detailed analysis covers the issues involved in the legal judgment, providing a comprehensive understanding of the classification and applicable GST rate for the products under consideration.
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