The Karnataka Authority of Advance Ruling (AAR) ruled that 12% GST is payable on Manufacturing and Selling of Automatic Feeder with Breaker, Drying machine, Cleaning and Grading Machine, and Pre-stem remover.
The applicant, Wave Colour Techniks is a partnership firm engaged in the manufacture of Automatic Feeder with Breaker, Pre-washer Machine, Drying Machine, Cleaning and Grading Machine, Pre-stem remover, Riffle Washer, Stem Remover, Spin Dryer, Automatic Weighing Machine and they are sold to farmers and farmer clusters.
The applicant states that the process line for raisins includes machines for washing breaking the lumps, automatic sulphuring (it is necessary), removing stones and wood sticks, drying in automatic dryers, curing and removing stems, cleaning and grading, handpicking, and finally automatic weighing, packing and packing inside the cartoon boxes. The said machines are related to processing like cleaning, grading, drying, and packing of agricultural produced Raisins and Grapes (post harvested).
The applicant has sought an advance ruling in respect of the GST applicable on the machines namely Automatic Feeder with Breaker, Pre-washer Machine, Drying Machine, Cleaning, and Grading Machine, Pre-stem remover, Riffle Washer, Stem Remover, Spin Dryer, Automatic Weighing Machine.
The two-member bench of Dr.M.P.Ravi Prasad and Mashood Ur Rehman Farooqui ruled that the machinery manufactured and sold by the applicant like Automatic Feeder with Breaker, Drying machine, Cleaning and Grading Machine, and Pre-stem remover are taxable at 6% under the CGST Act, 2017 and 6% under the KGST Act, 2016.
“The Automatic Weighing Machine manufactured and sold by the applicant is liable to tax at 9% under the CGST Act, 2017 and 9% under the KGST Act, 2017,” the AAR added.
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