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

Plastic latex collection cups used exclusively for rubber tapping were treated as manually operated agricultural implements because they collect latex directly from rubber trees in plantations. The Authority relied on the product's agricultural use and the Rubber Board's confirmation of widespread use, and classified the goods under HSN 8201 90 00 as other hand tools used in agriculture, horticulture or forestry. On that basis, the cups were held to be covered by the agricultural-implements exemption and exempt from GST.

---

---

Issues: Whether plastic latex collection cups exclusively used for rubber tapping are classifiable as agricultural implements and entitled to exemption from GST.

Analysis: The Authority found that latex collection cups are used exclusively for collecting rubber latex in rubber plantations and function as manually operated agricultural implements. Reliance was placed on the earlier ruling on the same product and on the Rubber Board's confirmation that such cups are widely used for collection of latex directly from rubber trees. The Authority further held that the goods are covered by HSN 8201 90 00 as other hand tools used in agriculture, horticulture or forestry, and are not specifically classified in Chapter 82 in a manner that would exclude such treatment.

Conclusion: The plastic latex collection cup is classifiable under HSN 8201 90 00 as an agricultural implement and is exempt from GST under Sl. No. 137 of Notification No. 02/2017-Central Tax (Rate) dated 28.06.2017.

---