Gujarat AAR: 18% GST Levy on HTP Kirloskar Power Sprayer

The Gujarat Bench of Authority for Advance Ruling (AAR) ruled that the Good and Services Tax (GST) at the rate of 18% is applicable to the ‘HTP Kirloskar Power Sprayer’ manufactured by M/s. Kirloskar Oil Engines Ltd. as well as the 8-digit Harmonised System of Nomenclature(HSN) code is 8424 89 90.

The petitioner, Kirloskar oil engines seeks an advance ruling on the tax rate of the good ‘HTP Kirloskar Power Sprayer’ and the fixation of the HSN number. At 12% the tax for the mechanical sprayer is fixed while the GST for agriculture and horticulture sprayers is classified at 18%.

The petitioner, the product would be used merely for the agriculture/horticulture industry, despite the product comprising of spraying the pesticides or additional liquids. The same would specify that they don’t secure any customer information through which the same has been decided whether the buying of the impugned goods was being used for what kind of field.

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The head Amit Kumar Mishra, Central Member, and Milind Kavatkar, State Member referred to the website of the manufacturer via which the technical specification along with the targeted use of the product was revealed. Authority referred to Notification No. I /2017 -Central Tax (Rate), on 28-6-2017, it was discovered that the goods appear in Schedule III of the same in which the GST levied to apply was 18% (9% CGST and 9% SGST).

The same would be mentioned that entry 325 of Schedule III where the mentioned details were discovered to be parallel with the information on the product “other than sprinklers; drip irrigation systems including laterals; mechanical sprayer; nozzles for drip irrigation equipment or nozzles for sprinklers” utilised for the decided GST rate.

It comes in the other category under the head 8424, via which the second part of the GST rate in the HSN number was established to be 89. The explanatory notes of the HSN beneath the Head 8424 were perused for the category of the power sprayer through the manufacturer-applicant and were found 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 finalized.