Advance Ruling- Classification of Goods- The Applicant is a manufacturer of fogging machines operating in the market of B2G (Business to Government Sector) which are being used for the purposes of mosquito control/ Health/pest/vector control and similar applications. The applicant has been applying for government tenders and charging GST @ 18% rate on all their tax invoices while the competitors are charging GST @ 12% on the same product which has resulted in ambiguity and confusion in the marketplace regarding the correct GST rate over the concerned product. Further, since the applicant is charging tax at a higher rate compared to their competitors, the applicant is becoming costly and is losing on various bids and tenders.

Questions on which Advance Ruling is being sought:-

I. Whether the thermal based fogging machines used for mosquito/health/ pest/ vector control can be classified as mechanical sprayers under entry no. 195B of Schedule II of Notification no 1/2017 Central Tax (Rate) dated 28th June 2017 as amended from time to time or under entry no. 325 of schedule III-"Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers whether or not charged, spray guns and similar appliances, steam or sand blasting machines and similar jet projecting machines (other than sprinklers; drip irrigation systems including laterals; mechanical sprayer, nozzles for drip irrigation equipment or nozzles for sprinklers]?

Authority for Advance Ruling, Haryana held that:-  The thermal based fogging machines are covered under the entry no. 325 of schedule III and taxable @ 18%.