Dated the 17th June, 2021 : -Total 7 clarifications issued by GST
List of SEVEN GST
Circulars issued providing
clarity on the following issues:
|
Sr No |
Circular No. |
Subject |
Link |
|
1 |
Circular No. 149/05/2021-GST |
Clarification regarding applicability of GST on supply of
food in Anganwadis and Schools |
|
|
2 |
Circular No.150/06/2021-GST |
Clarification regarding applicability of GST on the
activity of construction of road where considerations are received in
deferred payment (annuity) |
|
|
3 |
Circular No. 151/07/2021-GST |
Clarification regarding GST on supply of various services
by Central and State Board (such as National Board of Examination) |
|
|
4 |
Circular No. 152/08/2021-GST |
Clarification regarding rate of tax applicable on
construction services provided to a Government Entity, in relation to
construction such as of a Ropeway on turnkey basis |
|
|
5 |
Circular No. 153/09/2021-GST |
GST on milling of wheat into flour or paddy into rice for
distribution by State Governments under PDS |
|
|
6 |
Circular No. 154/09/2021-GST |
GST on service supplied by State Govt. to their
undertakings or PSUs by way of guaranteeing loans taken by them |
|
|
7 |
Circular No. 155/09/2021-GST |
Clarification regarding GST rate on laterals/parts of
Sprinklers or Drip Irrigation System |
- Applicability
of GST on supply of food in Anganwadis and Schools.(Circular
No. 149/05/2021-GST )
Key Points:-
a)
The CBIC vide Circular No.
149/05/2021-GST dated June 17, 2021 clarified
that services
provided TO an educational institution by way of serving of food ( catering including mid- day meals) is EXEMPT from levy of GST irrespective
of its funding from government grants or corporate donations.
b)
Educational institutions as
defined in the notification include
aganwadi
c)
Hence, No GST on Supply of Food
in Anganwadis and Schools.
- Applicability
of GST on the activity of construction of road where considerations are
received in deferred payment (annuity). (Circular
No. 150/06/2021-GST dated June 17, 2021)
Key Points:-
a. It clarified that Entry 23A of
notification No. 12/2017-Central Tax does NOT exempt GST on the annuity
(deferred payments) paid for construction of roads.
b. GST is
exempt on service, falling under heading 9967 (service code), by way of
access to a road or a bridge on payment of annuity [entry
23A of notification No. 12/2017-Central Tax]. Heading 9967 covers “supporting
services in transport” under which code 996742 covers “operation
services of National Highways, State Highways, Expressways, Roads &
streets; bridges and tunnel operation services”. Entry
23 of said notification exempts “service by way of access to a
road or a bridge on payment of toll”. Together the entries 23
and 23A exempt access to road or bridge, whether the consideration are in the
form of toll or annuity [heading 9967].
c.
Services by way of construction of road fall under heading 9954.
d. This
heading inter alia covers general construction services of highways, streets,
roads railways, airfield runways, bridges and tunnels. Consideration for
construction of road service may be paid partially upfront and partially in
deferred annual payments (and may be called annuities). Said entry 23A does not
apply to services falling under heading 9954 (it specifically covers
heading 9967 only). Therefore, plain reading of entry 23A makes it clear that
it does not cover construction of
road services (falling under heading 9954), even if deferred payment is made by
way of instalments (annuities).
- GST
on supply of various services by Central and State Board (such as National
Board of Examination - NBE). (Circular No. 151/07/2021-GST)
Key Points:-
a) GST is exempt on services provided by Central
or State Boards ( including the boards such as NBE) by way of conduct
of examination for the students, including conduct of entrance examination for
admission to educational institution [under S. No. 66 (aa) of notif No.
12/2017-CT(R)]. Therefore, GST shall NOTapply
to any fee or any amount charged by such Boards for conduct of such
examinations including entrance examinations.
b) GST is exempt on input services relating to
admission to, or conduct of
examination, such as online testing service, result publication,
printing of notification for examination, admit card and questions papers
etc, when provided to such Boards
[under S. No. 66 (b) (iv) of notif No. 12/2017- CT(R)].
c) GST at
the rate of 18% applies to other
services provided by such Boards, namely of providing accreditation to
an institution or to a professional ( accreditation fee or registration fee
such as fee for FMGE screening test ) so as to authorise them to provide their
respective services
- GST
rate on construction services provided to a Government Entity w.r.t
construction of a Ropeway on turnkey basis. (Circular No. 152/08/2021-GST)
Key Points:-
a)
Whether services supplied to a Government Entity
by way of construction such as of “a ropeway” are eligible for concessional
rate of 12% GST.
b) It clarified that works contract service provided by way of
construction such as of rope way shall fall
under entry at Sl. No. 3(xii) of notification 11/2017-(CTR) and attract GST at
the rate of 18%.
- GST
on milling of wheat into flour or paddy into rice for distribution by
State Governments under PDS. (Circular No. 153/09/2021-GST)
Key Points:-
a)
IT clarified that Public Distribution
specifically figures at entry 28 of the 11th Schedule to the constitution,
which lists the activities that may be entrusted to a Panchayat under Article
243G of the Constitution. Hence, said entry No. 3A would apply to composite
supply of milling of wheat and fortification thereof by miller, or of paddy
into rice, provided that value
of goods supplied in such composite supply (goods used for fortification,
packing material etc) does not exceed 25% of the value of composite supply.
It is a matter of fact as to whether the value of goods in such composite
supply is up to 25% and requires ascertainment on case-to-case basis.
b)
In case the supply of service by way of milling
of wheat into flour or of paddy into rice, is NOT eligible for exemption under Sl. No. 3 A of Notification
No. 12/2017- Central Tax (Rate) dated 28.06.2017 for the reason that value of
goods supply in such a composite supply exceeds
25%, then the applicable GST rate
would be 5% if such composite supply is provided to a registered person,
being a job work service (entry No. 26 of notification No. 11/2017- Central Tax
(Rate) dated June 28, 2017). Combined reading of the definition of job-work
[section 2(68), 2(94), 22, 24, 25 and section 51] makes it clear that a person
registered only for the purpose of deduction of tax under section 51 of the
CGST Act is also a registered person for the purposes of the said entry No. 26,
and thus said supply to such person is also entitled for 5% rate.
- GST
on service supplied by State Govt. to their undertakings or PSUs by way of
guaranteeing loans. (Circular No. 154/09/2021-GST)
Key Points:-
a) It clarified that guaranteeing
of loans by Central or State Government for their undertaking or PSU is
specifically EXEMPT under Entry No. 34A of Notification No.
12/2017-Central Tax (Rate) dated June 28, 2017.
b) What is Entry No. 34A of Notification no. 12/2017-Central Tax (Rate)
dated June 28, 2017 exempts ?
“Services
supplied by Central Government, State Government, Union territory to their
undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the
loans taken by such undertakings or PSUs from the banking companies and
financial institutions.”
- GST
rate on laterals/parts of Sprinklers or Drip Irrigation System. (Circular No.
155/09/2021-GST)
|
S. No. |
Chapter Heading/
Sub-heading/Tariff Item |
Description of Goods |
CGST rate |
|
195B |
8424 |
Sprinklers; drip irrigation systems including
laterals; mechanical sprayer |
6% |
IT clarified the intention of notifying GST
rate on laterals/parts of Sprinklers or Drip Irrigation System at 6% (each CGST and SGST).
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 June 28, 2017
which has been inserted vide notification No. 6/2018- Central Tax (Rate), dated
January 25, 2018 and reads as below:
The intention of this entry has been to cover laterals (pipes to
be used solely with with p 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 systems, 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.
All 7 GST Circulars as mentioned below
1.
Applicability
of GST on supply of food in Anganwadis and Schools
CBIC-190354/36/2021-TRU
Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi,
Dated the 17th June, 2021
To,
The
Principal Chief
Commissioners/ Chief
Commissioners/ Principal Commissioners/ Commissioner of
Central Tax (All) / The
Principal Director Generals/ Director Generals (All)
Madam/Sir,
Sub–
Clarification regarding applicability of GST on supply of food in Anganwadis
and Schools -reg.
Representations have been received seeking clarification
regarding applicability of GST on the issues as to whether serving of food in
schools under Mid-Day Meals Scheme would be exempt if such supplies are funded
by government grants and/or corporate donations. The issue was examined by GST
Council in its 43rd meeting held on 28th May, 2021.
Entry 66 clause (b)(ii) of notification No. 12/2017-Central Tax
(Rate) dated 28th June, 2017, exempts Services provided to an educational
institution, by way of
catering, including any mid-day meals scheme sponsored by the Central
Government, State Government or Union territory. This
entry applies to pre-school and schools.
Accordingly, as per said entry 66, any catering service provided
to an educational institution is exempt from GST. The entry further mention
that such exempt service includes mid- day meal service as specified in the
entry. The scope of this entry is thus wide enough to cover any serving of any
food to a school, including pre-school. Further, an Anganwadi interalia provides
pre-school non- formal education. Hence, aganwadi is covered by the definition
of educational institution (as pre-school)
Accordingly, as per recommendation of the GST Council, it is
clarified that services provided to an educational institution by way of
serving of food ( catering including mid- day meals) is exempt from levy of GST
irrespective of its funding from government grants or corporate donations
[under said entry 66 (b)(ii)]. Educational institutions as defined in the
notification include aganwadi. Hence, serving of food to anganwadi shall also
be covered by said exemption, whether sponsored by government or through
donation from corporates.
Difficulty if any, in the implementation of this circular may be
brought to the notice of the Board.
Yours
faithfully,
(Rajeev
Ranjan) Under Secretary, TRU
Email: rajeev.ranjan-as@gov.in
Tel:
011 2309 5558
2. Applicability
of GST on the activity of construction of road where considerations are
received in deferred payment (annuity)
CBIC-190354/36/2021-TRU
Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi,
Dated the 17th June, 2021
To,
The
Principal Chief
Commissioners/ Chief
Commissioners/ Principal Commissioners/ Commissioner of
Central Tax (All) / The
Principal Director Generals/ Director Generals (All)
Madam/Sir,
Sub–Clarification
regarding applicability of GST on the activity of construction of road where
considerations are received in deferred payment (annuity)-reg.
- Certain representations have been
received requesting for a clarification regarding applicability of GST on
annuities paid for construction of road where certain portion of
consideration is received upfront while remaining payment is made through
deferred payment (annuity) spread over years.
- This issue has been examined by the GST
Council in its 43rd meeting held on 28th May, 2021.
- GST is exempt on service,
falling under heading 9967 (service code), by way of access to a road or
a bridge on payment of annuity [entry 23A of
notification No. 12/2017-Central Tax]. Heading 9967 covers “supporting
services in transport” under which code 996742 covers “operation
services of National Highways, State Highways, Expressways, Roads &
streets; bridges and tunnel operation services”. Entry 23 of
said notification exempts “service by way of access to a road or a
bridge on payment of toll”. Together the entries 23 and
23A exempt access to road or bridge, whether the consideration are in the
form of toll or annuity [heading 9967].
- Services by way of construction of road
fall under heading 9954. This heading inter alia covers
general construction services of highways, streets, roads railways,
airfield runways, bridges and tunnels. Consideration for construction of
road service may be paid partially upfront and partially in deferred
annual payments (and may be called annuities). Said entry 23A does not
apply to services falling under heading 9954 (it specifically covers
heading 9967 only). Therefore, plain reading of entry 23A makes it clear
that it does not cover construction of road services (falling under
heading 9954), even if deferred payment is made by way of instalments
(annuities).
3. Accordingly, as recommended by the GST Council, it is hereby
clarified that Entry 23A of notification No. 12/2017-CT(R) does
not exempt GST on the annuity (deferred payments) paid for construction of
roads.
4. Difficulty if any, in the implementation of this circular may
be brought to the notice of the Board.
Yours
faithfully,
(Rajeev
Ranjan) Under Secretary, TRU
Email: rajeev.ranjan-as@gov.in
Tel:
011 2309 5558
3.
GST on supply of various services by Central
and State Board (such as National Board of Examination)
CBIC-190354/36/2021-TRU
Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi,
Dated the 17th June, 2021
To,
The
Principal Chief
Commissioners/ Chief
Commissioners/ Principal Commissioners/ Commissioner of
Central Tax (All) / The
Principal Director Generals/ Director Generals (All)
Madam/Sir,
Sub–
Clarification regarding GST on supply of various services by Central and State
Board (such as National Board of Examination)–reg.
Certain representations have been received seeking clarification
in respect of taxability of various services supplied by Centre and State
Boards such as National Board of Examination (NBE). These services include
entrance examination ( on charging a fee) for admission to educational
institution, input services for conducting such entrance examination for
students, accreditation of educational institutions or professional so as to
authorise them to provide their respective services. The issue was examined by
GST Council in its 43rd meeting held on 28th May, 2021.
Illustratively, NBE
provides services of conducting entrance examinations for admission to courses
including Diplomat National Board (DNB) and Fellow of National Board (FNB),
prescribes courses and curricula for PG medical studies, holds examinations and
grant degrees, diplomas and other academic distinctions. It carries out all
functions as are normally carried out by central or state educational boards
and is thus a central educational board.
According to explanation 3(iv) of
the notification No. 12/ 2017 CTR, “Central and State Educational Boards” are
treated as Educational Institution for the limited purpose of providing
services by way of conduct of examination to the students.
Therefore, NBE is an ‘Educational Institution’ in
so far as it provides services by way of conduct of examination, including any
entrance examination, to the students.
- Following services supplied by an
educational institution are exempt from GST vide sl. No. 66 of the
notification No. 12/ 2017- Central Tax (Rate) dated 28.06.2017,
Services provided –
- (a) by an educational institution to its
students, faculty and staff;
- (aa) by an educational institution by way of
conduct of entrance examination against consideration in the form of
entrance fee;
- Similarly, services provided to an
educational institution, relating to admission to, or conduct of
examination is also exempt from GST [sl. No. 66 (b)(iv)- 12/2017-CT(r)].
- 3.3. Educational institutions are defined
at 2(y) of the said notification as follows-
- “(y) educational
institution” means an institution providing services by way of, –
- pre-school education
and education up to higher secondary school or equivalent;
- education as a part of
a curriculum for obtaining a qualification recognized by any law for the
time being in force;
- education as a part of
an approved vocational education course;”;
Further, clause (iv) of Explanation of said notification reads
as below:
“(iv) For removal of
doubts, it is clarified that the Central and State Educational Boards shall be
treated as Educational Institution for the limited purpose of providing services
by way of conduct of examination to the students”
- Taking into account the above, the GST
Council has recommended, to clarify as below:
- GST is exempt on services
provided by Central or State Boards ( including the boards such as NBE)
by way of conduct of examination for the students, including conduct of
entrance examination for admission to educational institution [under
S. No. 66 (aa) of notif No. 12/2017-CT(R)]. Therefore,
GST shall not apply to any fee or any amount charged by such Boards for
conduct of such examinations including entrance examinations.
- GST is also exempt on input services
relating to admission to, or conduct of examination, such as online testing
service, result publication, printing of notification for examination,
admit card and questions papers etc, when provided to such Boards [under
S. No. 66 (b) (iv) of notif No. 12/2017- CT(R)].
- GST at the rate of 18% applies to other
services provided by such Boards, namely of providing accreditation to an
institution or to a professional ( accreditation fee or registration fee
such as fee for FMGE screening test ) so as to authorise them to provide
their respective services
Difficulty if any, in the implementation of this circular may be
brought to the notice of the Board.
Yours
faithfully,
(Rajeev
Ranjan) Under Secretary, TRU
Email: rajeev.ranjan-as@gov.in Tel:
011 2309 5558
4. GST
rate on construction services provided to a Government Entity w.r.t
construction of a Ropeway on turnkey basis
CBIC-190354/36/2021-TRU
Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi,
Dated the 17th June, 2021
The
Principal Chief
Commissioners/ Chief
Commissioners/ Principal Commissioners/ Commissioner of
Central Tax (All) / The
Principal Director Generals/ Director Generals (All)
Madam/Sir,
Sub–
Clarification regarding rate of tax applicable on construction services
provided to a Government Entity, in relation to construction such as of a
Ropeway on turnkey basis-reg.
1. Reference has been received by the Board for a clarification
whether services supplied to a Government Entity by way of construction such as
of “a ropeway” are eligible for concessional rate of 12% GST under entry No. 3
(vi) of Notification No. 11/2017- CT (R) dt. 28.06.2017. On the recommendation
of the GST Council, this issue is clarified as below.
2. According to entry No. 3(vi) of notification No. 11/2017-CT
(R) dated 28.06.2017, GST rate of 12% is applicable, inter alia, on-
“(vi) Composite supply of
works contract as defined in clause (119) of section 2 of the Central Goods and
Services Tax Act, 2017, (other than that covered by items (i), (ia), (ib),
(ic), (id), (ie) and (if) above) provided to the Central Government, State
Government, Union Territory, a local authority a Governmental Authority or a
Government Entity, by way of construction, erection, commissioning,
installation, completion, fitting out, repair, maintenance, renovation, or
alteration of –
- a civil structure or any
other original works meant
predominantly for use other than
for commerce, industry, or any other business or profession; “
2.1 Thus, said entry No 3 (vi) does not apply to any works
contract that is meant for the purposes of commerce, industry, business of
profession, even if such service is provided to the Central Government, State
Government, Union Territory, a local authority a Governmental Authority or a
Government Entity. The doubt seems to have arisen in the instant cases as
Explanation to the said entry states, the term ‘business’ shall not include any
activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public
authorities. However, this explanation does not apply to Governmental Authority
or Government Entity, as defined in clause (ix) and (x) of the explanation to
said notification. Further, civil constructions, such as rope way for tourism
development shall not be covered by said entry 3(vi) not being a structure that
is meant predominantly for purposes other than business. While road, bridge,
terminal, or railways are covered by entry No. 3(iv) and 3(v) of said
notification, structures like ropeway are not covered by these entries too.
Therefore, works contract service provided by way of construction such as of
rope way shall fall under entry at sl. No. 3(xii) of notification 11/2017-(CTR)
and attract GST at the rate of 18%.
3. Difficulty if any, may be brought to the notice of the Board.
Yours
faithfully,
(Rajeev
Ranjan) Under Secretary, TRU
Email: rajeev.ranjan-as@gov.in
Tel:
011 2309 5558
5.
GST on milling of wheat into flour or paddy
into rice for distribution by State Governments under PDS
CBIC-190354/36/2021-TRU
Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi,
Dated the 17th June, 2021
To,
The
Principal Chief
Commissioners/ Chief
Commissioners/ Principal Commissioners/ Commissioner of
Central Tax (All) / The
Principal Director Generals/ Director Generals (All)
Madam/Sir,
Sub: GST
on milling of wheat into flour or paddy into rice for distribution by State
Governments under PDS –reg.
Certain representations have been received seeking clarification
whether composite supply of service by way of milling of wheat into wheat
flour, alongwith fortification, by any person to a State Government for
distribution of such wheat flour under Public Distribution System is eligible
for exemption under entry No. 3A of Notification No. 12/2017-Central Tax (Rate)
dated 28.06.2017, and also as regards the rate of GST on such milling, if it
does not fall in said entry No. 3A. The issue has been examined by GST Council
in its 43rd meeting held on 28th May, 2021.
Entry at Sl. No. 3A of Notification No. 12/2017-Central Tax
(Rate) dated 28.06.2017 exempts “composite supply of goods and services
in which the value of supply of goods constitutes not more than 25 per cent of
the value of the said composite supply provided to the Central Government,
State Government or Union territory or local authority or a Governmental
authority or a Government Entity by way of any activity in relation to any
function entrusted to a Panchayat under article 243G of the Constitution or in
relation to any function entrusted to a Municipality under article 243W of the
Constitution”.
As per the recommendation of the GST Council the issue is
clarified as below.
Public Distribution specifically figures at entry 28 of the 11th
Schedule to the constitution, which lists the activities that may be entrusted
to a Panchayat under Article 243G of the Constitution. Hence, said entry No. 3A
would apply to composite supply of milling of wheat and fortification thereof
by miller, or of paddy into rice, provided that value of goods supplied in such
composite supply (goods used for fortification, packing material etc) does not
exceed 25% of the value of composite supply. It is a matter of fact as to
whether the value of goods in such composite supply is up to 25% and requires
ascertainment on case-to-case basis.
In case the supply of service by way of milling of wheat into
flour or of paddy into rice, is not eligible for exemption under Sl. No. 3 A of
Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 for the reason
that value of goods supply in such a composite supply exceeds 25%, then the
applicable GST rate would be 5% if such composite supply is provided to a
registered person, being a job work service (entry No. 26 of notification No.
11/2017- Central Tax (Rate) dated 28.06.2017). Combined reading of the
definition of job-work [section 2(68), 2(94), 22, 24, 25 and section 51] makes
it clear that a person registered only for the purpose of deduction of tax
under section 51 of the CGST Act is also a registered person for the purposes
of the said entry No. 26, and thus said supply to such person is also entitled
for 5% rate.
Difficulty if any, in the implementation of this circular may be
brought to the notice of the Board.
Yours
Faithfully,
Shashikant
Mehta Technical Officer (TRU)
Email: shashikant.mehta@gov.in
6.
GST on service supplied by State Govt. to
their undertakings or PSUs by way of guaranteeing loans
CBIC-190354/36/2021-TRU
Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi,
Dated the 17th June, 2021
To,
The
Principal Chief
Commissioners/ Chief
Commissioners/ Principal Commissioners/ Commissioner of
Central Tax (All) / The
Principal Director Generals/ Director Generals (All)
Madam/Sir,
Sub: GST
on service supplied by State Govt. to their undertakings or PSUs by way of
guaranteeing loans taken by them –reg
Certain representations have been received requesting for
clarification regarding applicability of GST on supply of service by State
Govt. to their undertakings or PSUs by way of guaranteeing loans. The issue was
examined by GST Council in its 43rd meeting held on 28th May, 2021.
Entry No. 34A of Notification no. 12/2017-Central Tax (Rate)
dated 28.06.2017 exempts “Services supplied by Central
Government, State Government, Union territory to their undertakings or Public
Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such
undertakings or PSUs from the banking companies and financial institutions.”
Accordingly, as recommended by the Council, it is re-iterated
that guaranteeing of loans by Central or State Government for their undertaking
or PSU is specifically exempt under said entry No. 34A.
Difficulty, if any, in the implementation of this circular may
be brought to the notice of the Board.
Yours
faithfully,
Shashikant
Mehta Technical Officer (TRU)
Email: shashikant.mehta@gov.in
7. GST rate on laterals/parts of Sprinklers or
Drip Irrigation System
CBIC-190354/36/2021-TRU
Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi,
Dated the 17th 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 43rd meeting of GST
Council held on the 28th May, 2021.
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 28th June, 2017 which has
been inserted vide notification No. 6/2018- Central Tax
(Rate), dated 25th 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% |
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.
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
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