TaxTMI 
TaxTMI 
2025 (7) TMI 195
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....g provisions of the KSGST Act, Rules and the Notifications issued thereunder. 3. The details of the questions on which advance ruling is sought are given above and are not being reproduced. 4. The contentions of the applicant: 4.1. The applicant submits that they are engaged in the manufacture of an agricultural implement made of plastic, namely the Rooter Trainer Cup, which is used for the propagation of rubber plants. The process of plant propagation is considered an agricultural activity. The applicant is in the process of preparing for the manufacture and supply of the said product. 4.2. The applicant submits that the product is supplied to agricultural nurseries or directly to farmers for the propagation of rubber plants. A....
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....es reliance on an Advance Ruling pronounced by the Kerala Authority for Advance Ruling in Order No. KER/85/2019 dated 20.05.2020, which involved a similar issue. In that case, it was clarified that plastic cups used exclusively for the collection of rubber latex qualify as agricultural implements and are covered under agricultural activity. The applicant submits that the matter addressed in the above ruling is similar in nature to the present case, and therefore requests that a ruling be issued in line with the submissions made herein. 5. Comments of the Jurisdictional Officer: The application was forwarded to the jurisdictional officer in accordance with the provisions of Section 98(1) of the CGST Act. The jurisdictional officer, Sup....
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....icate, the Rooter Trainer Cups are made of reusable plastic in sizes of 600cc and 800cc and are filled with treated coir pith in which rubber seeds are sown and later either bud-grafted with the required clone or planted with budded stumps of a specific clone. The Rubber Board further certifies that RT cups of 600cc and 800cc are recommended exclusively for the cultivation of rubber. In view of the above, the Rooter Trainer Cup manufactured and supplied by the applicant, being manually operated and used exclusively by farmers for agricultural purposes, can be appropriately classified as an agricultural implement. 7.3. The applicant wants Ruling on the Classification and rate of agricultural implements namely Rooter Trainer Cup, made of p....
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.... entirely of plastic. 7.6 As discussed above, the item in question is made of plastic, and "Plastics and Articles thereof" fall under Chapter 39 of the Customs Tariff. The Chapter Notes to Chapter 39 do not exclude the subject product or any goods related to agricultural activity from its scope. Chapters 3901 to 3914 cover various types of plastics in primary forms, while Chapter 3915 pertains to waste, parings, and scraps of plastics. Chapter 3916 covers monofilaments. Chapters 3916 to 3925 describe various plastic products with specific classifications, none of which include the item under discussion, viz., rooter trainer cups or similar agriculture-related plastic products. Tariff heading 3926, which is the last 4-digit heading under ....
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....is the applicable rate of tax on the item. As discussed earlier, the item appears to fall under SI. No. 45 of Schedule IV of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, which reads as: 'Other articles of plastics and articles of other materials of headings 3901 to 3914 [other than bangles of plastic, PVC belt conveyor, plastic beads and plastic tarpaulins]'. This entry attracts Central GST at the rate of 14%, and an equal rate is applicable under the corresponding State GST notification. Further, Sl. No. 137 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 provides exemption to agricultural implements that are manually operated or animal-driven, falling under Chapter 8201. Since the item in question ne....