Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System - GST - States - TRADE CIRCULAR No. 15/2021

GOVERNMENT OF WEST BENGAL DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA-700015 TRADE CIRCULAR No. 15/2021 (Corresponding Central Circular No. 155/11/2021-GST) DATED: 30.06.2021 Subject: Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System. 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.oN. 195B under Schedule II of notification No. 1125-F.T., dated 28 th June, 2017 which has been inserted vide notification No. 134-F.T., dated 25th January, 2018 and reads as below: S. No. Chapter Heading/ Sub-heading/Tariff Item Description of Goods WBGST rate 195B 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 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 Commissionrer. 5. This Trade Circular shall be deemed to have come into force with effect from 17.06.2021. Sd/- (Khalid Aizaz Anwar) Commissioner, State Tax, West Bengal