2019(07)LCX0130(AAR)
AAR-MADHYA PRADESH
M/s RAVI MASAND
decided on 24/07/2019
AUTHORITY FOR ADVANCE
RULING - MADHYA PRADESH Goods and Service Tax
O/o THE COMMISSIONER, COMMERCIAL TAX,
MOTI BUNGALOW,
MAHATMA GANDHI MARG, INDORE (M.P.) - 452007
e-mail :aar@mptax.mp.gov.in Phone : 0731- 2437315 fax, no. : 0731-2536229
PROCEEDINGS OF THE AUTHORITY FOR ADVANCE RULING
U/S,98 OF THE GOODS AND SERVICES TAX ACT ,2017
Members Present
1. Rajiv Agrawal
Additional Commissioner,
Office of the Commissioner,CGST and Central Excise, Indore
2. Manoj Kumar Choubey
Joint Commissioner,
Office of the joint Commissioner of Commercial Tax, Indore Division-1
| GSTIN Number. If any/User-id | UNREGISTERED; PAN: |
| Name and address of the applicant | M/s. RAVI MASAND 58/1 Udyog Nagar, Nemawar Road Indore 452001 |
| Clause(s) of section 97(2) of CGST/SGST Act, 2017 under which the question(s) raised | a) Classification of any goods or
services or both; e) determination of the liability to pay tax on any goods or services or both |
| Present on behalf of applicant | Shree Sunil P Jain, CA |
| Case Number | 06/2019 |
| Order dated | 24/07/2019 |
| Order Number | 11/2019 |
PROCEEDINGS
(Under sub-section (4) of Section 98 of Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods & Service Tax Act, 2017)
1. The present application has
been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and MP Goods &
Services Tax Act, 2017 (hereinafter also referred to CGST Act and SGST Act
respectively) by M/s. ravi masand (hereinafter referred to as the Applicant) ,
not registered but desirous of obtaining registration under the Goods & Services
Tax.
2. The provisions of the CGST Act and MPGST Act are identical, except for
certain provisions. Therefore, unless a specific mention of the dissimilar
provision is made, a reference to the CGST Act would also mean a reference to
the same provision under the MPGST Act. Further, henceforth, for the purposes of
this Advance Ruling, a reference to such a similar provision under the CGST or
MP GST Act would be mentioned as being under the GST Act.
3. BRIEF FACTS OF THE CASE:
3.1 The Applicant is engaged in intend import, trade and/or manufacture/assemble
Agriculture Knapsack Sprayer¯ both mechanical and hand operated which is used
generally in agriculture.
3.2 The Agriculture Knapsack Sprayer¯ is classified under chapter sub heading
No. 84248200 of the Custom/Excise Tariff Act. GST tariff just mentions HSN of
8424. Now confusion is whether product lies in entry 325 of Sch III or entry
195B of Sch II of Notification no. 1/2017 as amended? IN market most of dealers
are charging GST @ 12% except a few who still charging @ 18%.
4. QUESTIONS RAISED BEFORE THE AUTHORITY:-
The following questions have been posted before the Authority in the
application:-
a) Applicant believes that the product Agriculture Knapsack Sprayer¯ is
classified under HSN 8424 and applicable tax rate is 12%. Details as per
Annexure.
b) Relevant extract of Notification No. 1/2017 dated 28-6-17 as amended vide
Notification No. 6/2018-Integrated Tax (Rate) dt. 25-01-2018 is enclosed
c) What shall be GST rate on such product? ,
5. CONCERNED OFFICERS VIEW POINT:
The Concerned Officer Submitted that the product Agriculture Mechanical Sprayer
will merit classification under Chapter Head 8424 of the GST Tariff and with
effect from 25.01.2018, the said product would attract GST @12% in terms of
Sr.No.195B of Schedule-II to Notification No.01/2017-CT(R) as amended vide
Notification No.06/2018-CT(R) dtd.25.012.018 and concurrent notifications issued
by the State Tax authorities.
6. RECORD OF PERSONAL HEARING:
6.1 Shree Sunil P Jain, CA of the applicant for personal hearing. He reiterated
submissions already made in the application. The Applicant in support of his
contention that the product Agriculture Knapsack Sprayer¯ is classified under HSN 8424 and applicable tax rate is 12%. gives following argument -
6.2 The Applicant produce relevant extract of Not.1/2017 as amended
| S.No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods Sch -II 6% |
| 195A | 8424 | Sprinklers; drip irrigation system including laterals; mechanical sprayers (wef 25-01-2018 vide Not. No.06/2018) |
| 195B | 8424 | Sprinklers; drip irrigation system including laterals; mechanical sprayers (wef 25-01-2018 vide Not. No.06/2018) |
| Sch-lll-9% | ||
| 325. | 8424 |
Mechanical appliances
(whether or not hand-operated) for projecting, dispersing or spraying
liquids or powders; spray guns and similar appliances; steam or sand
blasting machines and similar jet projecting machines *[other- than fire
extinguishers, whether or not charged] |
6.3. All items were covered under
Chapter 8424 were covered under Schedule III of Notification 1/2017 dated
28/06/2017 i.e. 9%. However, vide Not.6/2018 wef 25/01/2018 (25th GST Council
Meeting), mechanical sprayers, drip irrigation and sprinklers items GST rate is
reduced to 6%.
6.4 The Applicant argued that it clearly indicates Councils intention to
support agriculture/irrigation systems. Now, therefore Headings/Subheadings of
Chapter 8424 as specified in Sr.No.325 of Schedule III (as mentioned above)
though covering words mechanical appliances¯ does not cover mechanical devices
used for agricultural/irrigation purposes.
6.5. Such mechanical sprayers used for agriculture though backed up with battery
support are still mechanical sprayers and covered under Not.6/2018 dated
25/01/2018 and subject to GST @6% (effectively 12%)
6.6 The Applicant also enclosed
catalogue of mechanical sprayer for reference
6.7 Thus the mechanical sprayer must be taxed @ of 12% in GST
7. DISCUSSIONS AND
FINDINGS:
7.1 We have carefully considered the submissions made by the applicant in the
application and during time of personal hearing.
7.2 We find that the question
before us essentially pertains to classification of the product in question viz.
Agriculture Knapsack Sprayer, and the rate of duty applicable on such products,
particularly the applicability of concessional rate of tax in terms of
Notification No.01/2017-Central Tax (Rate) dtd.2806.2017 as amended vide
notification no.06/2018-CT(R) dtd.25.01.2018 and the corresponding notification
issued under MPGST Act, 2017. We. therefore observe that the issue before us is
squarely covered under Section 97(2)(a) and therefore we admit the application
for consideration.
7.3. We find that the applicant has sought ruling on the product viz.
Agriculture Knapsack Sprayers which are being traded by them. As per Sr.No. 14
of the application the applicant has desired a ruling on a specific question What shall he the rate of GST on such product.
7.2 We find that the question
before us essentially pertains to classification of the product in question viz.
Agriculture Knapsack Sprayer, and the rate of duty applicable on such products,
particularly the applicability of concessional rate of tax in terms of
Notification No.01/2017-Central Tax (Rate) dtd.2806.2017 as amended vide
notification no.06/2018-CT(R) dtd.25.01.2018 and the corresponding notification
issued under MPGST Act, 2017. We. therefore observe that the issue before us is
squarely covered under Section 97(2)(a) and therefore we admit the application
for consideration.
7.3. We find that the applicant has sought ruling on the product viz.
Agriculture Knapsack Sprayers which are being traded by them. As per Sr.No. 14
of the application the applicant has desired a ruling on a specific question What shall he the rate of GST on such product.
7.2 We find that the question
before us essentially pertains to classification of the product in question viz.
Agriculture Knapsack Sprayer, and the rate of duty applicable on such products,
particularly the applicability of concessional rate of tax in terms of
Notification No.01/2017-Central Tax (Rate) dtd.2806.2017 as amended vide
notification no.06/2018-CT(R) dtd.25.01.2018 and the corresponding notification
issued under MPGST Act, 2017. We. therefore observe that the issue before us is
squarely covered under Section 97(2)(a) and therefore we admit the application
for consideration.
7.3. We find that the applicant has sought ruling on the product viz.
Agriculture Knapsack Sprayers which are being traded by them. As per Sr.No. 14
of the application the applicant has desired a ruling on a specific question What shall he the rate of GST on such product.
| Sr. No. | Chapter Heading/ Subheading/ Tariff Item | Description 195B |
| 195B |
8424 |
Sprinklers; drip irrigation system including laterals; mechanical sprayers |
The Schedule-II specifies GST @12% (CGST @6% +SGST
@6%) for the goods specified under the schedule. We find that the Sr.No. 195B
has been inserted into the Schedule-II vide Notification No.06/2018-CT(R) and
the product under question Mechanical Sprayers is categorically mentioned there
under. Thus, that hardly leaves any doubt that Mechanical Sprayers classifiable
under Chapter head 8424 shall attract GST @12% with effect from 25.01.2018
7.7. We now take a look at the Sr.No.325 of Schedule-Ill to the Notification
No.01/2017-CT(R), which reads as under:
| Sr. No. | Chapter Heading/ Subheading/ Tariff Item | Description 195B |
| 325 |
8424 |
Mechanical appliances (Whether or not hand operated) for projecting dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines [other than sprinklers; drip irrigation systems including laterals; mechanical sprayer; nozzles for drip irrigation equipment or nozzles for sprinklers] |
The above Schedule-III specifies
GST @18% for the products/goods specified therein. It is noteworthy that the
Description against Sr.No.325, as mentioned above, has also been substituted
vide Notification no.06/2018-CT(R) dtd.25.01.2018 and the corresponding
notification issued under MPGST Act. Moreover, the exclusion part in this
description specifically excludes Mechanical Sprayers from the ambit of
Sr.No.325 to Schedule-III. We, therefore, find no ambiguity, whatsoever, as
regards classification of impugned product viz. Agriculture Mechanical Sprayers
as also the rate of GST that would be applicable on such Mechanical Sprayers
with effect from 25.01.2018.
7.7. We are inclined to agree with the argument of the applicant that mere
provision of a battery for operating the said Mechanical Sprayers would in no
way alter the nomenclature or classification of the impugned product.
7.8. In view of our findings above, we observe that Agriculture Mechanical
Sprayers will be classifiable under Chapter Head 8424 of the GST Tariff and such
product would attract GST @12% in terms of Sr.No.195B of Schedule-II of
Notification no.01/2017-CT(R) dtd.28.06.2017 as amended vide Notification No.01
2018-CT(R) dtd.25.01.2018, and the corresponding notification issued under MPGST
Act with effect from 25.01.2018.
RULING
(Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017)
8.1 The product Agriculture
Mechanical Sprayer will merit classification under Chapter Head 8424 of the GST
Tariff and with effect from 25.01.2018, the said product would attract GST @12%
in terms of Sr.No.195B of Schedule-II to Notification No.01/2017-CT(R) as
amended vide Notification No.06/2018-CT(R) dtd.25.012.018 and concurrent
notifications issued by the State Tax authorities.
8.2 This ruling is valid subject to the provisions under section 103(2) until
and unless declared void under Section 104(1) of the GST Act.
RAJIV AGRAWAL
(MEMBER)
MANOJ KUMAR CHOUBEY
(MEMBER)
Indore dt 24/07/2019
No. 06/2019/A.A.R/R-28/24
Copy to:-
1. Applicant
2. The Chief Commissioner, CGST & Central Excise, Bhopal Zone, Bhopal
3. The Commissioner(SGST) Indore
4. The Commissioner, CGST & Central Excise,
Indore
5. The Concerned Officer
6. The Jurisdictional Officer - State/Central
Equivalent .