<h2><strong>1. Background: GST Rates on Irrigation Equipment</strong></h2><p>? Initially, <strong>all goods under HSN 8424</strong> (mechanical appliances for spraying liquids, spray guns, sandblasting machines, etc.) were <strong>taxed at 18% GST</strong>.<br>? Later, <strong>"Nozzles for drip irrigation and sprinkler systems"</strong> were moved to the <strong>12% GST</strong> slab (Entry No. 195A) on <strong>22.09.2017</strong>.<br>? On <strong>25.01.2018</strong>, the <strong>GST Council revised the rate for micro irrigation systems</strong> (including sprinklers and drip irrigation systems) to <strong>12% GST</strong> under <strong>entry 195B</strong>.</p><hr><h2><strong>2. Clarification on GST Rate for Sprinklers & Drip Irrigation Systems</strong></h2><p>? <strong>Some tax officials incorrectly excluded laterals from sprinkler irrigation systems</strong> while allowing laterals in drip irrigation systems under <strong>entry 195B</strong>.<br>? <strong>Clarification:</strong></p><ul><li><strong>Sprinklers and drip irrigation systems, including laterals, attract 12% GST.</strong></li><li><strong>Sprinkler irrigation systems (which include nozzles, laterals, and other components) are covered under the 12% GST rate.</strong></li></ul><hr><h2><strong>3. What is Micro Irrigation?</strong></h2><p>Micro irrigation (also called <strong>localized irrigation, low-volume irrigation, or trickle irrigation</strong>) is a system where <strong>water is distributed under low pressure through a piped network</strong>.<br>? <strong>Types of micro irrigation systems covered under 12% GST:</strong></p><ul><li><strong>Drip irrigation (individual emitters & subsurface drip irrigation - SDI)</strong></li><li><strong>Micro-spray & micro-sprinkler irrigation</strong></li><li><strong>Mini-bubbler irrigation</strong></li></ul><hr><h2><strong>4. GST Rate for Sprinkler Systems</strong></h2><p>? <strong>Sprinklers & sprinkler irrigation systems, including laterals, will attract 12% GST.</strong><br>? <strong>All components of a sprinkler system (nozzles, laterals, and accessories) fall under this category.</strong></p><hr><h2><strong>5. Trade Notices & Implementation</strong></h2><p>? <strong>CBIC directs tax authorities</strong> to issue trade notices to ensure correct GST application.<br>? Any <strong>challenges in implementation</strong> should be reported to CBIC.<a href="https://cms.plasament.com/storage/shubham-pathak/circular-no-81.pdf">circular-no-81</a><br> </p>