Agricultural implements for rubber tapping held classifiable under HSN 8201 90 00 and exempt from GST.

Spouts, cup holders and collection cups used in rubber tapping were treated as agricultural implements because they are exclusively used in the tapping process. The ruling followed an earlier AAR view on latex collection cups and classified the goods as other hand tools of the kind used in agriculture, horticulture or forestry under HSN 8201 90 00. On that basis, the goods were held to fall within the relevant exemption entry and to be exempt from GST under Sl. No. 137 of Notification No. 02/2017-Central Tax (Rate) dated 28.06.2017.

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Issues: Whether spouts, cup holders and collection cups used for rubber tapping are agricultural implements classifiable under HSN 8201 90 00 and exempt from GST.

Analysis: The ruling treated latex collection cups as agricultural implements exclusively used for rubber tapping and followed the earlier ruling on the same item. On that basis, spouts, cup holders and collection cups used in the rubber tapping process were held to be agricultural implements falling within the description of other hand tools of the kind used in agriculture, horticulture or forestry. The exemption entry applicable to such goods was relied on for the tax treatment.

Conclusion: The goods are agricultural implements used for rubber tapping, classifiable under HSN 8201 90 00, and are exempt from GST under Sl. No. 137 of Notification No. 02/2017-Central Tax (Rate) dated 28.06.2017.

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