Agricultural implements for rubber tapping recognised as exempt from GST under the relevant HSN classification.

Spouts, cup holders and latex collection cups used exclusively for rubber tapping are treated as agricultural implements because rubber tapping is an agricultural activity and the items are used manually for tapping and collecting latex from rubber trees. On that basis, they are classified as hand tools of the kind used in agriculture, horticulture or forestry under HSN 8201 90 00 rather than as goods specifically classified under Chapter 82, and the ruling states that they are exempt from GST.

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Issues: Whether spouts, cup holders and latex collection cups used exclusively for rubber tapping are classifiable as agricultural implements and exempt from GST.

Analysis: The ruling accepted that rubber tapping is an agricultural activity and that the goods in question are used exclusively and manually in the tapping and collection of latex from rubber trees. On that basis, the items were treated as agricultural implements and not as goods specifically classified under Chapter 82, but as hand tools of the kind used in agriculture.

Conclusion: Spouts, cup holders and latex collection cups used exclusively for rubber tapping are classifiable under HSN 8201 90 00 as other hand tools of the kind used in agriculture, horticulture or forestry, and are exempt from GST.

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