Clarification regarding GST tax rate for Sprinkler and Drip Irrigation System including laterals. - GST - States - 35/2019-GST (CT/GST-15/2017/286)

GOVERNMENT OF ASSAM OFFICE OF THE COMMISSIONER OF TAXES, ASSAM KAR BHAWAN DISPUR, GUWAHATI-6 CIRCULAR NO. 35/2019-GST Dated Dispur the 30th January, 2019. Subject : Clarification regarding GST tax rate for Sprinkler and Drip Irrigation System including laterals-reg. No. CT/GST-15/2017/286. - Representations have been received seeking clarification as regards the scope and coverage of entry No. 195B of the Schedule Il to Notification No. 1/2017-(Rate) [FTX.56/2017/14 dated 29-06-2017]. The entry No. 195B was inserted vide Notification No. 6/2018-(Rate) [FTX.56/2017/Pt-111/76 dated 21-02-2018] and reads as below: Sl. No. Chapter Heading/ Subheading/Tariff Item Description of Goods SGST rate 195B 8424 Sprinklers; drip irrigation system including laterals; 6% 2. Doubts have arisen as in certain cases a view has been taken in the field that this entry would not cover laterals of sprinklers and sprinklers irrigation system , while laterals of drip irrigations are covered by this entry. 3. The matter has been examined. Initially, with effect from 01-07-2017, all goods falling under HS 8424, namely, Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines (other than fire extinguishers, whether or not charged), were placed under slab. Subsequently, on the recommendation of the GST Council, the item namely, Nozzles for drip irrigation equipment or nozzles for sprinkler was placed under 12% GST slab (Entry No. 195A with effect from 22-09-2017). Upon revisiting the issue of GST rate on micro irrigation including drip irrigation system, including laterals the GST Council recommended 12% GST rate on micro irrigation system, namely, sprinklers, drip irrigation system, including laterals. Accordingly, the said entry 195B was inserted in the Notification No. 1/2017(Rate) [FTX.56/2017/14 dated 29-06-2017]. 3.1 The micro irrigation, sometimes called localised irrigation , low volume irrigation , or trickle irrigation is a system where water is distributed under low pressure through piped network, in a pre-determined pattern, and applied as a small discharge to each plant or adjacent to it. The traditional drip irrigation using individual emmitters, sub-surfaces drip irrigations (SDI), micro-spray or micro-sprinkler irrigation, and mini bubbler irrigation all belong to the catgeory of micro irrigation method. 4. Therefore, the term sprinklers , in the said entry 195B, covers sprinkler irrigation system. Accordingly, sprinkler system consisting of nozzles, lateral and other components would attract 12% GST rate. 5. This Circular is clarificatory in nature and not meant for any interpretation of provisions of the Act and rules. 6. Difficulties, if any, in implementation of the above instructions may be brought to the notice of the Commissioner at an early date. 7. This Circular shall be deemed to have come into force with effect from the 31st December, 2018. Sd/- Anurag Goel, IAS., Commissioner of State tax, Assam, Dispur, Guwahati Memo No. CT/GST-15/2017/286-A Dated Dispur the 30th January, 2019.