Agricultural implement exemption applies to plastic latex collection cups used exclusively in rubber tapping under GST.

Plastic latex collection cups used exclusively in rubber tapping were treated as manually operated agricultural implements because they are used only to collect latex from rubber trees in agricultural operations. On that basis, they were classified under HSN 8201 90 00 as hand tools used in agriculture, horticulture or forestry and fell within the relevant GST exemption entry. The operative effect is that such cups are exempt from GST when their use is confined to agricultural latex collection.

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Issues: Whether plastic latex collection cups exclusively used for collecting rubber latex are classifiable as agricultural implements and exempt from GST under the relevant exemption notification.

Analysis: The plastic cups are used only in rubber tapping for collecting latex from rubber trees and are certified as being used in agricultural operations. They function as manually operated agricultural implements in rubber plantations and fall under HSN 8201 90 00 as other hand tools of the kind used in agriculture, horticulture or forestry. The item is therefore covered by the GST exemption entry for agricultural implements.

Conclusion: The plastic latex collection cup is classifiable as an agricultural implement and is exempt from GST.

Final Conclusion: The ruling recognises latex collection cups as exempt agricultural implements used exclusively in rubber tapping.

Ratio Decidendi: Goods used exclusively as manually operated agricultural implements for agricultural collection activity are classifiable according to their agricultural use and are eligible for exemption when covered by the relevant exemption entry.

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