TMI Blog2021 (12) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... T rate on micro irrigation system, namely, sprinklers, drip irrigation system, including laterals. Accordingly, the said entry 195B was inserted in the notification No. 1/2017-Central Tax (Rate). Hence, as per the CBIC vide the said circular dated 31.12.2018 has clearly clarified the matter that the term sprinklers , in the said entry 195B, covers sprinkler irrigation system. Sprinklers; drip irrigation system Including laterals; which covers sprinkler irrigation system, falling under Chapter heading /tariff item No. 8424 shall attract GST rate 12% (6% CGST and 6% SGST). Further, laterals/parts used solely or principally with sprinklers or drip Irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d are engaged in the manufacture of sprinkler system, drip irrigation system including laterals, P V C Pipes and other components accessories falling under HSN Code 8424 of GST Tariff and registered with GST Department holding Registration No. 23AAACK7078B1ZU. 3.2 SUBMISSION OF THE APPLICANT (i) The applicant submitted that for said system i.e. Sprinkler system, drip irrigation system including laterals, PVC Pipes and other components accessories is classified under HSN /chapter sub-heading No. 8424 82 00 of the GST tariff just mentions HSN of 8424. Hence Sprinkler system, drip irrigation system including laterals, PVC Pipes other components and accessories manufactured and supply by the Applicant under Guidelines of Per Drop More C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing under HSN Code 8424 of GST Tariff, attracting (ie 12% IGST and @6% CGST, @6% SGST. 4. QUESTION RAISED BEFORE THE AUTHORITY - Applicant believes that the product sprinkler system, drip irrigation system including laterals, P.V.C. Pipes, other components and accessories is classified under HSN 8424 and applicable tax rate is 12%, details as per the notification No. 1/2017-Central Tax (Rate), dated 28-6-2017. The entry No. 195B was inserted vide notification No. 6/2018-Central Tax (Rate), dated 25th January, 2018. What shall be GST rate on such products system falling under HSN 8424 attracting CGST @6% and SGST @ 6% or Not? 5. DEPARTMENT'S VIEW POINT- The Asst. Commissioner, CGST and Central Excise. Division-IV has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 inserted vide Notification No.06/2018 Central Tax(rate) dated 25.01.2018 is reproduced below:- Sr.No. Chapter Heading/Sub-heading/ Tariff Item Description of goods 195B 8424 Sprinklers, drip irrigation system including laterals, mechanical sprayers 7.3 We observed that the LII1R No. 19513 of Schedule II of Notification No. 01/2017 dated 28.06.17 was inserted vide Notification no. 06/2018 dated 25.01.2018. The entry No. 195B speaks about Chapter Heading/ Subheading/Tariff Item No. 8424 with Description of Goods as Sprinklers; drip irri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tem, including laterals. Accordingly, the said entry 195B was inserted in the notification No. 1/2017- Central Tax (Rate). 3.1 The micro irrigation, sometimes called localised irrigation , low volume irrigation , or ..trickle irrigation is a system where water is distributed under low pressure through piped network, in a pre-determined pattern, and applied as a small discharge to each plant or adjacent to it. The traditional drip irrigation using individual emmitters, subsurfaces drip irrigations (SDI), micro-spray or micro-sprinkler irrigation, and mini bubbler irrigation all belong to the category of micro irrigation method. 4. Therefore, the term sprinklers , in the said entry 195B, covers sprinkler irrigation system. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 7.6 Therefore. in view of above. the Sprinklers; drip irrigation system Including laterals; which covers sprinkler irrigation system, falling under Chapter heading /tariff item No. 8424 shall attract GST rate 12% (6% CGST and 6% SGST). Further, laterals/parts used solely or principally with sprinklers or drip Irrigation system, which are classifiable under heading 8424, wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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