TaxTMI 
TaxTMI 
2026 (9) TMI 1352
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....uppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s BAS-J Industries, having place of business at Building no. 618/1B/2, Vellanaipatty, Molapalayam, Coimbatore, Coimbatore, Tamil Nadu-641048 (hereinafter called as the "Applicant") has registered with GSTIN 33AAOFB8494P1ZJ under the Goods and Services Tax Act. They have filed this application for advance ruling under Section 97 of the CGST Act, 2017, and corresponding provisions under Section 97 of TNGST Act, 2017. The Applicant has made a payment of application fees of Rs. 10,000/- under sub rule (1) of Rule 104 of CGST Rules, 2017 and TNGST Rules, 2017. 2. Statement of relevant facts having a bearing on the qu....
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....ed and assembled exclusively within such machinery, and cannot be used in any other industrial equipment .; that therefore aquaculture machineries and equipment, its parts clearly fall within the concessional GST category of 5% GST. 3.3 The applicant presumes that historically; agricultural & poultry equipment have been kept at concessional GST rates to support: • Food production • Rural/agro-based industries • Essential sector inputs Thus, applying 5% GST aligns with policy intent. 3.4 That certain competitors are charging lower GST rates on the above equipment, citing varied interpretations of the applicable classification. This inconsistency has resulted in market distortion and loss of customers and business for their firm, as purchasers naturally prefer suppliers offering lower tax-inclusive prices. 3.5 The applicant has filed the present application for advance ruling seeking clarification on the following questions: 1. That the product classifiable under HSN 84368090 ("Other Agricultural Machinery") as per the First Schedule to the Customs Tariff Act, 1975 (made applicable to GST classification under Section 9 of th....
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....ce ruling is sought. Admissibility of queries raised in the application: 6.2 We find that the query is liable for admission as it gets covered under Section 97(2)(b) of CGST/TNGST Act, 2017 under: 1. "Classification of any goods or services or both". 6.3 We gather from the facts presented that the applicant who has been hitherto supplying aerator gear boxes and their spare parts falling under HSN 84834000 attracting 18% GST proposes to reclassify the same under HSN 84368090 as 'Other Agricultural machinery' thereby seeking coverage under Entry no.434 of Schedule-I of Notfn. No. 09/2025-CT(Rate) dt. 17.09.2025 attracting concessional rate of 5% GST. 6.4 At this juncture we deem it fit to delve into the changed fiscal scenario arising out of GST 2.0 reforms aiming at simplification of tax slabs and ease of doing business. Through such reforms and restructuring, the government reduced multiple slab rates to two major rates ie., 5% (lower rate) and 18% (standard rate) through issuance of Notfn. No. 09/2025-CT(Rate) dt.17.09.2025 effective from 22.09.2025. The lower rate category encompasses items critical for daily living such as essential food items, healt....
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....elow: 434. 8436 Other agricultural. horticultural. forestry, poultry-keeping or bee-keeping machinery, including germination plant fitted with mechanical or thermal equipment: poultry incubators and brooders: parts thereof 6.8 On a plain reading of the aforesaid sl.no.434, it can be seen that it covers only machinery used for agricultural, horticultural, poultry-keeping etc., and its parts falling under HSN 8436. The applicant is not a manufacturer/supplier of aerator machinery and supplies in aerator gear boxes and their spares only. In general parlance, gear boxes supplied by the applicant are only mechanical devices used for speed/direction/torque control. It is the applicant's claim that such aerator gear boxes dealt by them are designed to be used only in aerator machinery which in turn is used in aquaculture (prawn rearing). The applicant seeks to adopt classification of impugned items under HSN 84368090. The entries under HSN code 8436 are extracted below: 8436 OTHER AGRICULTURAL, HORTICULTURAL, FORESTRY, POULTRY-KEEPING OR BEEKEEPING MACHINERY, INCLUDING GERMINATION PLANT FITTED WITH MECHANICAL OR THERMAL EQUIPMENT; POULTRY INCUBATORS AND BRO....
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....lture (prawn rearing) would not merit classification under chapter 8436 to qualify for concessional rate of GST under the impugned notification. 6.10 Having so said, we find that the impugned goods are classifiable under HSN 84834000 which reads as under and aptly describes them and would attract standard rate of GST of 18% as per sl.no.468 of Schedule-II of impugned notification: 84834000 - Gears and gearing, other than toothed wheels, chain sprockets and Other transmission elements presented separately; ball or roller screws; gear boxes and other speed changers, including torque converters. 7. Taking up the second query of the applicant on spare parts, the applicant has stated that they supply the following spares: • Aerator gear box spares 13 teeth bevel pinion, 40 teeth bevel gear, 50 teeth helical gear, 11 & 12 teeth helical pinion, A2 worm shaft, A2 worm wheel 7.1 It is further stated by the applicant that the aforesaid spares are being supplied at 18% GST rate under subheading 84834000 as spare parts of aerator gear boxes. The applicant seeks ruling on whether these spare parts items could be classified under subheading 84368090 in terms of the....