12% Goods and Services Tax on sprinklers, drip irrigation systems (including horizontal), PVC pipes: AAR

2021-12-13 19:04:55 By : Mr. Alex Chen

The Madhya Pradesh Administration of Advance Ruling (AAR) stipulates that sprinklers are subject to a 12% consumption tax; drip irrigation systems, including branch pipes and PVC pipes.

The applicant submitted the system, that is, sprinkler irrigation system, drip irrigation system, including branch pipes. PVC pipes and other components are classified under the sub-heading of HSN/Goods and Services Tax Tariff Chapter 8424 82 00, and only 8424 HSN is mentioned. Applicants under the PMKSY's more crop per drop (micro-irrigation) component guide issued by the Ministry of Agriculture of the Government of India are based on the New Delhi 21/03.2017 Notice No. 803. Therefore, the consumption tax rate for such products is attracted by HSN 8424 (6% CGST and 6% SGST-a total of 12%.

The applicant believes that the product "sprinkler irrigation system, drip irrigation system including branch pipes, PVC pipes, other parts and accessories" is classified as HSN 8424, and the applicable tax rate is 12%. For details, please refer to 01/2017-Central Tax Number Notice (interest rate) date 28.06.2017 . 

The applicant has sought an advance ruling on the tax rate of goods and services for such products. 

Manoj Kumar Choubey and Virendra Kumar Jain's Coram ruled that branch pipes/components used alone or mainly with sprinklers or drip irrigation systems can be classified under heading 8424 and will be subject to a 12% goods and service tax (6% CGST and 6% SGST) ), even if provided separately. However, according to the chapter notes and chapter notes of HSN, any general-purpose parts classified as items other than 8424 shall be subject to consumption tax as applicable to the corresponding items.

The AAR further clarifies the sprinkler drip irrigation system, including branch pipes (pipes used only with sprinklers/drip irrigation systems)/components used alone or mainly with sprinklers or irrigation systems: "Can be classified under section headings/tariff item numbers. 8424 and in accordance with Article 195B of the Central Tax (Tax Rate) Notice No. 01/2017 dated June 28, 2017, Article 195B and the corresponding notice under the revised SGST, if provided, 12% (6% CGST and 6 % SGST) is a separate consumption tax rate, however, according to HSN chapter notes and chapter notes, any general-purpose part classified into titles other than 8424 shall be subject to consumption tax according to the circumstances applicable to the corresponding title.

Support our news work by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

Only accept the goods without the right to jointly keep the goods, the ownership of the goods is not equal to "supply": AAR [read order]

Epoxidized soybean oil is subject to a 5% consumption tax: AAR [read order]