Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System - GST - States - 108/2021-GST

GOVERNMENT OF ASSAM OFFICE OF THE PRINCIPAL COMMISSIONER OF STATE TAX CUM COMMISSIONER OF TAXES, ASSAM KAR BHAWAN:: DISPUR, GUWAHATI-6 CIRCULAR NO. 108/2021-GST Dated Dispur the 21 st June, 2021 Subject: Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System-reg. No. CT/GST-15/2017/476.- - 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 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-(Rate) [FTX.56/2017/14 dated 29th June. 2017] which has been inserted vide notification No. 6/201 8(Rate) [FTX.56/20 I 7/Pt-III/76 dated 21st February, 2018] and reads as below: S. No. Chapter Heading/ Sub-heading/Tariff Item Description of Goods CGST 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 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. This Circular is clarificatory in nature and not meant for any interpretation of provisions of the Act and rules. 5. Difficulties, if any, in implementation of the above instructions may be brought to the notice of the Commissioner at an early date. 6. This Circular shall be deemed to have been issued on 17th June, 2021. Sd/= Rakesh Agarwala, IAS Principal Commissioner of State tax, Assam, Dispur, Guwahati