HTP Kirloskar Power Sprayer Attracts 18% GST: AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that the 18% GST is payable on HTP Kirloskar Power Sprayer.

The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that HTP Kirloskar Power Sprayer's merit classification under HSN 8424 89 90 is covered under Entry No. 325 of Schedule-III of Notification No. 1/20l7-Central Tax (Rate), dated 28.6.2017.

The applicant is in the business of manufacturing pump sets and diesel engines at its Rajkot plant and intends to sell. The applicant has been procuring HTP sprayers from importers or domestic manufacturers like Aspee, Mumbai and engines from other vendors to manufacture the HTP Kirloskar Power Sprayer Set at Rajkot Plant. The complete HTP Sprayer set is packed in a carton box and sold through the dealer network.

The applicant sought an advance ruling on the issue in respect of the 8 digit HSN and GST tax rate of HTP Kirloskar Power Sprayer (engine driven).

The applicant submitted that the HTP Kirloskar Power Sprayer can be used in any field as per their application and it is not used exclusively in agriculture. The applicant supplies the product to the client/customer in various fields and does not maintain any such data by which it can ascertain the customer/client for which purpose or can say in which field it would be used.

The AAR observed that the CBIC has clarified that mechanical appliances, whether or not hand operated for projecting, dispersing, or spraying liquids, attracted 18% GST. The applicant goods are mechanical appliances which are used in dispersing and spraying liquids in various fields as per the requirements.

Citation: GUJ/GAAR/R/2022/44

Dated: 28.09.2022

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