Supply of Tree Pruners Exempt from GST [Read AAR]

The Karnataka Authority of Advance Ruling (AAR Karnataka) in the matter of M/s GLOBAL MARKETING has ruled out that Supply of Tree Pruners Exempt from GST.

The applicant is a Partnership firm, registered under the provision of the Central Goods and Services Tax Act, 2017, as well as the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST / SGST Act respectively). The applicant is engaged in the business activity of buying and selling products called “Tree Pruners”. The product essentially consists of a pole which can be extendable in length and fitted with a knife, which is used in agricultural activities such as harvesting the crops of areca, pepper and coconut and also in spraying pesticides.

The Question and Ruling are as follows:

a) Whether the tree pruners covered by HSN Code 82016000 relate to Agricultural implements manually operated or animal driven i.e. hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes, axes, bill hooks and similar hewing tools; secateurs and “pruners of any kind”; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry other than Ghamella”.

b) Whether the supply of Agriculture Hand Tools i.e., Tree Pruners to farmers is exempt from the CGST/ SGST/ IGST Act.

RULING

a) Tree pruners covered under HSN Code 82016000 relate to Agricultural implements manually operated or animal driven i.e. hand tools, such as spades, shovels, mettocks, picks, hoes, forks and rakes, axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry.

b) The supply of Tree Pruners is exempted vide Entry No.137 of Notification No.2/2017- Central Tax (Rate) dated 28.06.2017.

For Official Ruling Download PDF Given Below: