Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System - GST - States - 07/2021-GST

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE TAXES (POLICY BRANCH) VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002 No. F.3(386)/GST/Policy/2021/708-714 Dated 10/08/2021 CIRCULAR No. 07/2021-GST of State Tax (Ref. Circular No. 155/11/2021-GST of Central Tax) Subject: Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System regarding. 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- State Tax (Rate), dated 30th June, 2017 which has been inserted vide notification No. 6/2018- State Tax (Rate), dated 7 th March, 2018 and reads as below: S. No. Chapter Heading/ Sub-heading/Tariff Item Description of Goods DGST 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. Difficulty, if any, may be brought to the notice of the Commissioner, State Tax (ANKUR GARG) COMMISSIONER (State Tax)