CBIC had received various representations from the industry requesting a clarification regarding GST rate on parts of Sprinklers or Drip Irrigation System when they are supplied separately (i.e. not along with entire sprinklers or drip irrigation system).
In the 43rd GST Council Meeting, the council had recommended that GST rate of 12% shall apply on parts of sprinklers/ drip irrigation systems falling under tariff heading 8424 (nozzle/laterals) even when they are supplied separately (i.e. not along with entire sprinklers or drip irrigation system).
The same has now been clarified by CBIC vide Circular No. 155/11/2021-GST dated 17th June 2021 that laterals/parts to be used solely or principally with sprinklers or drip irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, even if supplied separately. However, any part of general use, which gets classified in a heading other than 8424, in terms of Section Note and Chapter Notes to HSN, shall attract GST as applicable to the respective heading.