Circular No. 155/11/2021-GST dated 17th June 2021
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:
HSN Code : 8424
Description of HSN :
Sprinklers; drip irrigation systems including laterals; mechanical sprayer
CGST Rate – 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.