TaxTMI 
TaxTMI 
2026 (2) TMI 581
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.... only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean reference to the corresponding similar provisions in the APGST Act, 2017. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The applicant attached copies of challans as proof of payment of Rs.5,000/- each for CGST and SGST CPIN Nos. 25103700014739 dated 09.10.2025, and 25103700014739 dated 09.10.2025 respectively, towards the Advance Ruling fee. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. 4. Brief Facts of the case: 4.1 M/s Bindhu Industries is engaged in the manufacturing and supply of Paddle Wheel Aerators and their exclusive parts used in aquaculture ponds for shrimp, fish crab and related farming activities. 4.2 PRODUCT DESCRIPTION The product in question is the Paddle Wheel Aerator, a specialized machine designed, manufactured, and supplied exclusively for aquaculture (shrimp, fish, crab, and oyster farming). ....
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....er rate @ 18%. 5.4 The 56th GST Council Meeting (September 2025) recommended rate rationalization for fisheries and aquaculture equipment, reducing GST on "Pumps and Aerators" from 18% / 12% to 5%, as published by the Department of Fisheries, Government of India. 5.5 This rationalization specifically reduced the GST rate on essential items like aerators and pumps for aquaculture operations to 5%, from the earlier 12% to 18%. 5.6 The Press Information Bureau (PIB) release dated 4th September 2025 (PRID: 2163641) and Department of Fisheries official notification confirm that Diesel engines, pumps, aerators, and sprinklers, essential for aquaculture operations and hatcheries, will now attract only 5 percent GST instead of the earlier 12 to 18 percent. 5.7 The Notification No. 9/2025-Central Tax (Rate), dated September 17, 2025 (uploaded document), superseding the earlier notification, outlines new GST rates in its Schedules, which necessitates clarification for the correct classification and applicable rate post amendment. 5.8 HSN Chapter 8436 covers "Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery..." and the GST rate under this he....
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....registered under Bhimavaram Circle and is engaged in the manufacture and supply of Paddle Wheel Aerators and their parts used in aquaculture. It was reported that the applicant has been classifying the goods under HSN 84798999 and paying GST at 18 percent as per the GSTR-3B return filed on 15-10-2025. The officer further stated that there is no Gazette notification specifically clarifying the HSN code for Paddle Wheel Aerators used in aquaculture, which is why the applicant has approached the Authority seeking clarification. Upon verification of the GST B.O portal and APTIS portal, the officer confirmed that no proceedings or issues are pending against the applicant in respect of the subject matter. Accordingly, the jurisdictional officer submitted that the application may be processed by the Authority for Advance Ruling. 7. Applicant's Interpretation of Law: 7.1 HSN 8479 (Previous Classification): • Description: HSN 8479 covers "Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter - other". • Analysis: This is a residual heading, typically applied when a product does not find a specific ....
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....within 8436, which is an appropriate fit for machinery used in the allied agricultural sector but not specifically named in other subheadings of 8436. 7.5 Parts Classification: As per the general rules of interpretation, parts exclusively or principally used with a machine are classified with that machine. Since the complete aerator is classified under 8436, the exclusively used parts (Floats, Impellers, Frame, etc.) would be correctly classified under the parts heading 8436 99 90 ("Parts: Other") and also attract the concessional 5% GST rate. 7.6 Supporting Documents: • Recent press release of Ministry of Fisheries, Animal Husbandry & Dairying dated 04th September 2025. • Suyog Agro Poultry Products Pvt. Ltd. v. C.C. (Sea Imp.), Chennai (CESTAT, Dec 2015). • Paddle wheel brochure. • Various screenshots of State and Central Government advertisements. • Notification No. 09/2025-Central Tax (Rate) dated 17th September 2025. 8. Personal Hearing: The proceedings of Personal Hearing was conducted on 19.11.2025, for which the authorized representatives, Sri P.V. Nagendra Varma, Chartered Accountant and Sri Vamsi....
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....r fish farmers." By using the word "ESSENTIAL," the government ensures that the tax benefit is focused precisely on the inputs that directly impact farming efficiency and output (like aerators for oxygenation and pumps for water management). Our product, a Paddle Wheel Aerator, is an "aerator" in its ordinary, commercial, and functional sense (adds air/oxygen to water), and its use is EXCLUSIVELY for aquaculture, making it "essential for aquaculture operations". Based on the explicit text from the PIB Press release, the correct and unambiguous statement is, "Aerators essential for aquaculture operations and hatcheries are taxed at 5% GST." 9.2.3 M/s. Suyog Agro & Poultry Products Pvt. Ltd. V. Commissioner of Customs (Export), Chennai (CESTAT): The Tribunal held that the expression "Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery" in Heading 8436 is broad and inclusive, not confined strictly to land-based agriculture. It observed that aquaculture and fish farming constitute a form of aqua-farming, analogous to agriculture, since both involve cultivation and management of living organisms for production. Tribunal Head that that ....
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....sorbed into water 5. Continuous water circulation distributes oxygen throughout the pond This mechanism is essential for maintaining healthy aquatic life and is indispensable for modern aquaculture operations. 3. Components of the Paddle Wheel Aerator: The machine is manufactured using a combination of in-house produced components and purchased components. All components are custom-engineered, dimensionally matched, and manufactured exclusively for aquaculture Paddle Wheel Aerators. 4. Parts Manufactured In-house (By M/s Bindhu Industries) 4.1 Paddle Wheel Impellers • Material : PPCP Plast (HSN 3902 2000) • Process : Injection Moulding • Function : Splash water, create droplets, and enable oxygen tramuler • Clarification : These impellers are specifically designed only for aquaculture paddle wheel aerators 4.2 Floats (HDPE Pontoon Units) • Material : HDPE (HSN 3901 2000) • Process : Blow Moulding • Function : Keep the aerator buoyant and stable in ponds • Clarification : The float size, weight, and design are specific to our aerator models. 4.3 Fr....
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.... • Installed ONLY in soil ponds, lined ponds, and shrimp/fish farms • All components are custom-engineered for pond applications 10. Discussion and Findings: 10.1 The Authority examined the application filed in Form GST ARA-01, the documents placed on record, the applicant's submissions, and the points presented during the personal hearing held on 19-11-2025 with reference to the Notification No. 1/2017-Central Tax (Rate), dated 28.6.2017 and the recent Notification No. 9/2025 Central Tax (Rate), dated 17.9.2025. 10.2. The applicant M/s Bindu Industries is in the business of manufacture and supply of Paddle Wheel Aerators and Parts. As seen from the purchase invoices, it is noticed that the applicant procures various inputs like S.S. Rods (18%), Plastic Master Batch-L/Yellow (18%), Conveyor Belts (18%), Polymers of ethylene and Propylene Copolymers (18%), Electric Motors ( 18% / 5%) and SS Pipes /Tubers (18%) and producing Floats, Paddle Wheels, Doom (Motor & Gearbox Cover) Frame Assembly, rotating shafts. Further, the applicant purchasing Electric motors, Gear boxes and hard ware and used the various components already produced to manufacture the Padd....
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.... the relevant entries relating to the HSN Codes 8436 and 8479 as envisaged in Notification No. 1/2017 Central Tax (Rate), dated 28.6.2017 and Notification No.9/2025 Central Tax (Rate), dated 17.9.2025. Notification No. 1/2017 Central Tax (Rate), dated 28.6.2017 Schedule II - 6% S.No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 199. 8436 Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery, including germination plant fitted with mechanical or thermal equipment; poultry incubators and brooders Schedule III - 9% S.No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 366. 8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter [other than Passenger boarding bridges of a kind used in airports (8479 71 00) and other (8479 79 00)] Notification No. 9/2025-Central Tax (Rate), dated 17.9.2025. Schedule I - 2.5% S.No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 434. 8436 Other agricultural, horticultural, forestry, poultry-keeping or beekeeping machinery, including germination plant....
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....e without mandating HSN reclassification, targeting prior rates of 12-18% under existing codes like 8479. No schedule entry explicitly lists aerators under HSN 8436; the benefit applies functionally to essential aquaculture equipment regardless of precise heading. 10.10 The HSN 8436 covers agricultural, horticultural, or poultry machinery, but paddle wheel aerators function via surface splashing for oxygen transfer in ponds, aligning more with general mechanical appliances than soil/plant/ livestock tools. Trade precedents overwhelmingly favor 8479 over 8436 for such aerators, avoiding interpretive overreach. 10.11 In view of the above, the Paddle wheel aerators remain appropriately classified under HSN 84798999, as the residual heading aligns with their mechanical function of water agitation and oxygen transfer, not reclassified by recent GST changes. HSN 8479 applies to machines with individual functions not specified elsewhere in Chapter 84, precisely fitting paddle wheel aerators' specialized splashing mechanism, as confirmed by consistent import data and trade practice. Residual headings like 84798999 are not "last resort" but principal for unlisted appliances, overr....