12% GST to be levied on Manufacturing feeder, Drying machine, Cleaning & Grading Machine, Pre-stem remover and 18% GST on Automatic Weighing Machine

Last updated: 07 August 2021

Save Share

Quick Summary

The Karnataka Authority for Advance Ruling has determined the Goods and Services Tax (GST) applicable to specific machinery. Manufacturing feeder, drying machines, cleaning and grading machines, and pre-stem removers will attract a 12% GST. In contrast, automatic weighing machines will be subject to an 18% GST.

Court :
Karnataka AAR

Brief :
In M/s. Wave Colour Techniks, [Advance Ruling No. KAR ADRG 29/2021 decided on June 07, 2021], M/s. Wave Colour Techniks ('the Applicants') has sought an advance ruling on the GST applicable on the machines namely Automatic Feeder with Breaker, Pre-washer Machine, Drying Machine, Cleaning, and Grading Machine, Pre-stem remover, Riffle Washer, Stem Remover, Spin Dryer, Automatic Weighing Machine.

Citation :
Advance Ruling No. KAR ADRG 29/2021 decided on June 07, 2021

In M/s. Wave Colour Techniks, [Advance Ruling No. KAR ADRG 29/2021 decided on June 07, 2021], M/s. Wave Colour Techniks ('the Applicants') has sought an advance ruling on the GST applicable on the machines namely Automatic Feeder with Breaker, Pre-washer Machine, Drying Machine, Cleaning, and Grading Machine, Pre-stem remover, Riffle Washer, Stem Remover, Spin Dryer, Automatic Weighing Machine.

The Hon'ble Karnataka Authority for Advance Ruling ('KAAR') classified the machines under Notification No. 1/2017. Central Tax (Rate) dated June 28, 2017 ('Goods Rate Notification') under HSN 8423 providing that the machinery manufactured and sold by the Applicants like Automatic Feeder with Breaker, Drying machine, Cleaning and Grading Machine, and Pre-stem remover are taxable at 6% under the CGST Act, 2017 and 6% under the KGST Act, 2017.

Furthermore, the Automatic Weighing Machine manufactured and sold by the applicant is liable to tax at 9% under the CGST Act, 2017 and 9% under the KGST Act, 2017.

Therefore, 12% tax is to be levied on Manufacturing feeder, Drying machine, Cleaning and Grading Machine and Pre-stem remover and 18% should be levied on Automatic Weighing Machine.

Online GST Course by Bimal Jain

FAQ :

These machines, including the pre-stem remover, are subject to a 12% GST.

An automatic weighing machine manufactured and sold by the applicant is liable to an 18% GST.

The ruling was made by the Karnataka Authority for Advance Ruling (KAAR).

The machines are classified under HSN 8423 according to Notification No. 1/2017, Central Tax (Rate) dated June 28, 2017.

143 Views Comment Share GST Report

Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

View Judgements

Comments