Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System - GST - States - 155/11/2021

Circular No. 155/11/2021-GST No. 12-25/2018-19-EXN-GST-(575)-18573-18591 Government of Himachal Pradesh, Excise and Taxation Department. To 1. The Additional/Jt. Commissioner of State Taxes and Excise, (South Zone, North Zone, Central Zone), Shimla, Palampur, Mandi, H.P. 2. The Joint Commissioner of State Taxes and Excise, Flying Squad, (Central Zone, North Zone, South Zone), Una, Palampur, Parwanoo, H.P. 3. The Dy. Commissioner of State Taxes and Excise, Shimla, Solan, Una, Sirmour, Bilaspur, Hamirpur, Mandi, Kullu, Chamba, Kangra, Revenue Distt Nurpur and BBN Baddi, H.P. 4. The Asstt. Commissioner of State Taxes and Excise, Incharge Distt. Kinnour, H.P. Dated Shimla-9 2nd July, 2021. Sir, Subject: Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System regarding. Various doubts have arisen 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 43rd 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 notification No. 1/2017- State Tax (Rate), dated 30th June,2017 which has been inserted vide notification No. 6/2018- State Tax (Rate), dated 24th January, 2018 and reads as below: S. No. Chapter Heading/ Sub-heading/Tariff Item Description of Goods SGST 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. 5. This circular shall come into force w.e.f. 17.06.2021. 6. Difficulty if any, in the implementation of this circular may be brought to the notice of this office. Yours Faithfully, Sd/ Yunus, (IAS) Commissioner of State Taxes and Excise, Himachal Pradesh