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Agriculture Implements used for rubber tapping are exempted from GST

Recently AAR gave an important ruling dated 17th September 2019 regarding the implication of GST on agriculture implements used for rubber tapping in case of M/s. Geo Thomas & Co. [2019] 110 taxmann.com 513 (AAR - KERALA) which is discussed as below:

Facts of the case
  • The applicant is engaged in the manufacture and supply of goods/ implements used by rubber farmers for agricultural operations including taping, collection and process. The products include plastic cup, spout and cup holder for latex collection Etc. The applicant is also a supplier of latex collection cup, which is made up of plastic.
Issue Involved
  • What is the classification and rate of tax of agricultural implements used for rubber tapping such as Spouts, Cup Holders and Collection Cups?
Observation/ Ruling
  • AAR held that the Spout, cup holder and latex collection cup are agricultural implements exclusively used for rubber tapping come under the classification HSN 8201 90 00 “other hand tools of the kind used in agricultural, horticulture or forest” and are exempted from GST.
Please click here for Advance Ruling.

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