Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System

Last updated: 15 July 2021

Notice Date : 17 June 2021

Circular No. 155/11/2021-GST

CBIC-190354/36/2021-TRU Section-CBEC
Government of India
Ministry of Finance
(Department of Revenue)
North Block, New Delhi
Dated the 17^th June, 2021

To,

Principal Chief Commissioners/ Principal Directors General, Chief Commissioners/ Directors General,
Principal Commissioners/ Commissioners of GST and Central Tax (AII),

Madam/Sir,

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 43^rd meeting of GST Council held on the 28^th 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- Central Tax (Rate), dated 28^th June, 2017 which has been inserted vide notification No. 6/2018- Central Tax (Rate), dated 25^th January, 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 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 Board immediately. Hindi version shall follow.

Yours faithfully
(Patil Sameer Shivajirao)
OSD, TRU
Email: sameer.sp@gov.in
Tel: 011 2309 5543