The Authority for Advance Ruling (AAR), Haryana, has recently in an application filed before it, held that the supply of spraying services, is non-taxable under GST.
The aforesaid observation was made by the Haryana AAR, when an application was filed before it by the applicant M/S PI Industries Ltd, who is engaged in the business of manufacturing Agrochemicals.
The application being sought by the applicant in respect of the questions as to whether the supply of spraying services undertaken by the applicant, is covered under the notification no. 12/2017 CT and hence exempt from the payment of tax, and also as to if tax is payable , then whether the applicant can avail input tax credit, of inputs and input services used for undertaking the supply of spraying services, it was submitted by applicant that the activity undertaken by it, which relates to the spraying of agrochemicals provided by it, to the farmers, is covered under Sl. No 54 of the notification no. 12/2017 CT, and under Sl. No 57 of the notification no.9/2017 – integrated tax (rate), dated 26.6.2017, as amended. Hearing the submissions of the applicant, the AAR Panel comprising of Sunder Lal, the CGST member, along with Kumud Singh, the SGST member, ruled that the supply of spraying services undertaken by the applicant, is covered under the notification no. 12/2017 CT and hence exempt from the payment of tax under GST.
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