2018 (9) TMI 1418 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – [2018] 59 G S.T.R. 242 (AAR), 2018 (17) G. S. T. L. 438 (A. A. R. – GST) – Classification of goods/services/both – rate of tax – coverage of various items used in the sprinklers and drip irrigation systems sold individually as well as part of a complete system – N/N. 01/2017 dated 28.06.2017 as inserted vide N/N. 06/2018 dated 25.01.2018 – applicant has contended that along with nozzles later vide notification no. 06/2018 dated 25.01.2018 a new entry was introduced as entry no 195B “Sprinklers; drip irrigation system including laterals; mechanical sprayers” which included all the lateral parts of these irrigation systems into Schedule II also.
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Held that:- The laterals related only to drip irrigation systems have been covered under this entry and laterals of sprinklers are not covered under the amended entry – Sprinklers is not in itself a complete irrigation system but constitutes an essential component of a Sprinkler
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Notification No. 27/2017 CT- (Rate) dated 22.09.2017 and 6/2018 – CT (Rate) dated 25-1-2018 respectively covers only “Nozzles for Sprinkler” and “Sprinklers” which would attract GST 12% (CGST 6% + SGST 6%) – Risers ( which connects sprinkler to laterals) along with all other laterals such as adopter, bend, coupler ,end cap, PCN(C-Type), group nipple, reducer bare, socket, Bush, Y(bere) , Latch clamps ,C clamps, Riser Pipes, Rubber Rings, Tee, Clamps, Foot button, Ripit, Nozzle etc. are not covered under entry no. 195A and 195 B.
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Ruling:- As per entry No. 195 B of the schedule II of Notification No. 1/2017 – CT (Rate) dated 28-6-2017, as amended by Notification No. 06/2018 – CT (Rate) dated 25-1-2018, Laterals of sprinklers such as clamps, bends, tee, coupler, bush, foot button, latch, clamp, riser pipe, socket etc. are not covered to attract GST 12% (CGST 6% + SGST 6%) but instead will attract GST at 18% (CGST 9% + SGST 9%).
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Laterals of drip irrigation system will attract
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NT: 1. The applicant Smita Gupta (M/s. Vinay Irrigation) (here in after referred to as Applicant ) has sought an Advance Ruling on the Entry No. 195B of Schedule II of notification no 01/2017 dated 28.06.2017 as inserted vide notification no 06/2018 dated 25.01.2018. The applicant seeks advance ruling over the coverage of various items used in the sprinklers and drip irrigation systems sold individually as well as part of a complete system. 2. The applicant is engaged in manufacturing and trading of various plastic and metallic items which are used in agricultural irrigation. These items are Adopter, coupler, Tee, Clamps, Foot button, Ripit, Nozzle etc. All these items are used as part of sprinkler or Drip irrigation system depending upon the requirement of each farmer. These items are supplied as part of a complete sprinkler or drip irrigation system and also as spares separately as and when required by farmer for replacement. 3. All above items are used by the farmers and most of the
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nozzles for 6% 195B** 8424 Sprinklers; drip irrigation system including laterals; mechanical sprayers ; 6% *-inserted by Noti. No. 27/2017 Central Tax (Rate) dated 22.09.2017. **-inserted by Noti. No. 06/2018 Central Tax (Rate) dated 25-01-2018. Schedule III – 9% S.No. Chapter/Heading/Sub-heading/Tariff item Description of Goods CGST rate (1) (2) (3) (4) 325. 8424 Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines 9% Mechanical sprayer; nozzles for drip irrigation euipment or nozzles ***-Amended vide notification no 27/2017 Central Tax (Rate) dated 22.09.2017 and 06/2018 Central Tax (Rate) dated 25-01-2018 5. Till 22.09.2017 all the items listed under tariff heading 8424 were taxable @ 18% (9% CGST + 9% SGST) vide entry no 345 of schedule III of notification no 01/2017. 6. Vide no
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ter through its lateral roots Designers added more storage space, with lateral expansion of the rear compartment In the case of applicant, laterals in relation to irrigation system mean all such devices and equipment which help in the working of the system and without which it may not work. All the products of the applicant are laterals to the sprinkler and drip irrigation. 9. The applicant further submitted that, sprinkler and drip irrigation are 2 different system designed for distinct uses. Sprinkler is in itself a complete system designed for irrigation by use of water pumping. It has not been defined in the law. Dictionary/ internet definitions are as follows:- An Irrigation sprinkler is a device used to irrigate agricultural crops, lawns, landscapes, golf courses, and other areas. They are also used for cooling and for the control of airborne dust. Sprinkler irrigation is a method of applying irrigation water which is similar to natural rainfall. Water is distributed through a sy
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1. The applicant has sought advance ruling on the coverage of the items covered under Annexure 1 under entry no. 195B of schedule II of notification no 01/2017 dated 28.06.2017 as amended vide notification no. 06/2018 dated 25.01.2018. S.No. Chapter/Heading/Sub-heading/Tariff item Description of Goods CGST rate (1) (2) (3) (4) 325. 8424 Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines [other than sprinklers; drip irrigation systems including laterals; mechanical sprayer; 9% 3 Personal Hearing (PH) In the matter personal hearing was given to the applicant, Mr. Ranjan Mehta, CA, (Authorised Representative) of applicant appeared for personal hearing on 20.07.2018. During the PH he reiterated that the case may be decided as per submission already made in the application for Advance R
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s a device with a lot of small holes that you put on the end of a hose in order to water plants, grass, etc. Sprinkler may range from small single nozzle sprinklers to multiple nozzle sprinklers and can be used for irrigation, fire fighting, powder spraying etc. b) Sprinkler Irrigation System Sprinkler Irrigation is a method of applying irrigation water which is similar to rainfall. Water is distributed through a system of pipes usually by pumping. It is then sprayed into the air and irrigated entire soil surface through spray heads so that it breaks up into small water drops which fall to the ground. Components of a sprinkler irrigation system. A sprinkler system usually consists of the following components: (i) A Pumping Unit (ii) Tubings- main/sub-mains and laterals (iii) Couplers (iv) Sprinkler head (v) Other accessories and laterals such as valves, bends, plugs and risers. (i) Pumping Unit: Sprinkler irrigation systems distribute water by spraying it over the fields. The water is
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tees, reducers, elbows, hydrants, butterfly valve and plugs. (e) Fertilizer applicator. It is clear from above that Sprinkler Irrigation system mainly consists of a functional assembly of pump unit, mainline and sub lines tubing, laterals and sprinkler connected to each other. Nozzles and sprinklers covered in entry no. 195A and 195B are just one of the components of Sprinkler irrigation system hence to consider or equate Sprinkler as Sprinkler irrigation system will not be correct. c) Drip Irrigation System: Drip irrigation is a type of micro-irrigation system that has the potential to save water and nutrients by allowing water to drip slowly to the roots of plants, either from above the soil surface or buried below the surface. The goal is to place water directly into the root zone and minimize evaporation. Drip irrigation systems distribute water through a network of valves, pipes, tubing, and emitters. Components of Drip Irrigation System: A typical system consists of a source of
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int in the mainline to release the entrapped air during the start of system and to break the vacuum during shut off. 9. Non- return valve: It is used to prevent the damage of pump from back flow of water in rising main line of drip irrigation system. 10. Pressure gauge: It is used to indicate the operating pressure of the drip system. The pressure gauges are installed at the inlet and outlet of the san and screen filters 11. Grommet and take-off: These are used to connect the lateral to submain. A hole is pinched with hand drill of pre determined size in submain. Grommet is fixed into the hole on submain. Take-off is pressed into the grommet. Grommet acts as a seal. The sizes are different for 12 mm and 16 mm laterals. 12. End cap: They are used to close the lateral ends, submain ends or main ends. Submains and mains are preferably provided with flush valve. 13. Fertilizer system: It is used to add the chemicals (nutrients, herbicides, pesticides etc.) to the irrigation water. d) Later
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onent of a Sprinkler Irrigation System which when assembled with other laterals and accessories makes a complete functional sprinkler irrigation system. The applicant contented that the items supplied by him are necessarily part of the sprinkler and drip irrigation system which is true but unlike the entry relating to drip irrigation which clearly specifies drip irrigation system including laterals this entry confines only to sprinklers and neither includes laterals of sprinkler nor sprinkler irrigation system. Risers, adopter, bend, coupler ,end cap, PCN(C-Type), group nipple, reducer bare, socket, Bush, Y(bere), Latch clamps, C clamps, Riser Pipes, Rubber Rings, Tee, Clamps, Foot button, Ripit, Nozzle are all laterals to the sprinklers which when assembled with sprinkler constitutes Sprinkler Irrigation System. In case of drip irrigation system as per entry No.195A and 195 B of the schedule II of Notification No. 1/2017 – CT (Rate) dated 28-6-2017, later amended by Notification No.27
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ively But Risers ( which connects sprinkler to laterals) along with all other laterals such as adopter, bend, coupler ,end cap, PCN(C-Type), group nipple, reducer bare, socket, Bush, Y(bere) , Latch clamps ,C clamps, Riser Pipes, Rubber Rings, Tee, Clamps, Foot button, Ripit, Nozzle etc. are not covered under entry no. 195A and 195 B. Based on above facts along with provision of law the ruling is as follows: RULING: As per entry No. 195 B of the schedule II of Notification No. 1/2017 – CT (Rate) dated 28-6-2017, as amended by Notification No. 06/2018 – CT (Rate) dated 25-1-2018, Laterals of sprinklers such as clamps, bends, tee, coupler, bush, foot button, latch, clamp, riser pipe, socket etc. are not covered to attract GST 12% (CGST 6% + SGST 6%) but instead will attract GST at 18% (CGST 9% + SGST 9%). Laterals of drip irrigation system will attract GST 12% (CGST 6% + SGST 6%). – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement
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