The Gujarat Bench of Authority for Advance Ruling (AAR) has held that, the Good and Services Tax (GST) at rate of 18% is applicable to ‘HTP Kirloskar Power Sprayer’ manufactured by M/s. Kirloskar Oil Engines Ltd. and the 8 digit Harmonised System of Nomenclature(HSN) code is 8424 89 90.
The applicant, Kirloskar Oil Engines sought an advanced ruling on the tax rate of the good ‘HTP Kirloskar Power Sprayer’ and the fixation of the HSN number. The tax for Mechanical Sprayer is fixed at 12% whereas the GST for agriculture and horticulture sprayer is classified at 18%.
The applicant submitted that the product is not for exclusive use in the agriculture/horticulture industry, even though the usage may include spraying of pesticides or other liquids. It was further submitted that they do not have any customer/client data by which it can be ascertained whether the purchase of the impugned goods was for the use in which field.
The authority comprising Amit Kumar Mishra, Central Member and Milind Kavatkar, State Member referred to the website of the manufacturer, from which the technical specifications and the intended use of the product was found out. Notification No. I /2017 -Central Tax (Rate), dated 28-6-2017 was referred to by the authority and it was found that the goods appear in Schedule III of the same in which the GST applicable was 18% (9% CGST and 9% SGST). It was clarified that the Entry 325 of the Schedule III, in which the following description was found to be concurrent with the description of the product – “other than sprinklers; drip irrigation systems including laterals; mechanical sprayer; nozzles for drip irrigation equipment or nozzles for sprinklers” was used for ascertaining the GST Rate.
It belonged to the ‘other’ category in the under the head 8424, from which the second part of the HSN number was ascertained to be 89. The explanatory notes of the HSN under the Head 8424 was perused for classification of the power sprayer by the manufacturer-applicant and was found out to be 8424 89 90,
“The 8 digit HSN code of product ‘HTP kirloskar Power Sprayer’ is 8424 89 90. GST Tax rate on goods viz. HTP kirloskar Power Sprayer’ would be 18% {CGST @9%+SGST@9% & IGST @18%),” the AAR concluded.
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