Ruling: KRITI INDUSTRIES products classified under HSN 8424, subject to 12% GST. Rectification maintains original decision.

The Authority ruled that products manufactured by M/s. KRITI INDUSTRIES (INDIA) LIMITED, including sprinkler systems and PVC pipes, are classified under HSN 8424 and attract a GST rate of 12% (6% CGST and 6% SGST). A typographical error in the original order necessitated a rectification, maintaining the classification and tax rate. The final ruling ensures compliance with GST provisions, remaining valid unless declared void.

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Issues: Classification of products under HSN 8424 and applicable GST rate

Analysis:

1. Filing of Application (Issue 1): The application was filed under section 97 of the Central Goods and Services Act, 2017 and MP Goods and Services Act, 2017 by M/s KRITI INDUSTRIES (INDIA) LIMITED, seeking clarification on the classification and applicable tax rate for their products.

2. Provisions of CGST and MPGST Acts (Issue 2): The Authority noted that the provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, a reference to the CGST Act would also include the same provision under the MPGST Act for the purpose of this Advance Ruling.

3. Brief Facts of the Case (Issue 3): M/s. KRITI INDUSTRIES (INDIA) LIMITED is engaged in the manufacture of sprinkler systems, drip irrigation systems, PVC pipes, and other components. The company sought clarification on the classification of their products under HSN 8424 and the applicable GST rate.

4. Question Raised (Issue 4): The applicant questioned the classification and GST rate applicable to products falling under HSN 8424, specifically referring to notification No. 1/2017-Central Tax (Rate) and entry No. 195B inserted vide notification No. 6/2018-Central Tax (Rate).

5. Original Order (Issue 5): The Authority, after considering various submissions, ruled that the products in question are classifiable under chapter heading/tariff item No. 8424 and attract a GST rate of 12% (6% CGST and 6% SGST). The ruling was based on relevant notifications and circulars issued by the CBIC, New Delhi.

6. Rectification of Order (Issue 6): A typographical error was identified in the original order, leading to a rectification process. The rectified ruling reiterated the classification of products under HSN 8424 and maintained the GST rate of 12% (6% CGST and 6% SGST). The rectification was made to ensure accuracy and clarity in the ruling.

7. Final Ruling (Issue 7): The rectified ruling clarified the classification and GST rate for the products in question, ensuring compliance with the provisions of the GST Act. The ruling remained valid subject to the specified provisions under the Act unless declared void under relevant sections.

This detailed analysis covers the issues involved in the legal judgment, providing a comprehensive understanding of the classification and applicable GST rate for the products under consideration.

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