Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System - GST - States - CIRCULAR No. 10/2021(STATE)

File No.REV03-12039(31)/55/2021-AC-GST-CCT Government of Andhra Pradesh Commercial Taxes Department Proceedings of the Chief Commissioner of State Tax, Andhra Pradesh CIRCULAR No. 10/2021(STATE) IN REFERENCE TO 155/11/2021(CENTRAL), 02/07/2021 Sub:- Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System regd. Ref:- From the GOI, MOF, DOR, Circular No.155/11/2021-GST, dated 17-06-2021. 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 43 rd meeting of GST Council held on the 28th May, 2021. 2. The GST rate on Sprinklers or Drip Irrigation System along with their laterals/parts are governed by S.No. 195B under Schedule II of the notification issued in the G O Ms No.258, Revenue (Commercial Taxes-II) Department, dated 29-6-2017 (Notification No. 1/2017- Central Tax (Rate), dated 28th June, 2017) which has been inserted vide Notification issued in the G O Ms No.93, Revenue (Commercial Taxes-II) Department, dated 19-2-2018 (notification No. 6/2018- Central Tax (Rate), dated 25 th January, 2018) and reads as below: S. No. Chapter Heading/ Subheading/Tariff Item Description of Goods APG ST rate 19 5B 8424 Sprinklers; drip irrigation systems including laterals; mechanical sprayer 6% 3. 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. 4. Difficulty, if any, may be brought to the notice of the Chief Commissioner immediately. Peeyush Kumar Commissioner