2025-VIL-125-AAR
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SGST Advance Ruling Authority

GST – Karnataka AAR - Classification of Artificial Turf; Artificial Grass - Classification and applicable rate of GST on the pure supply of Artificial Turf/Artificial Grass - HELD - The Chapter 57 of the Customs Tariff deals with "Carpets and other textile floor coverings." The notes to this chapter clarify that the heading includes articles where textile materials form the exposed surface. Specifically, Chapter Heading 5703 covers "carpets and other textile floor coverings (including Turf), tufted, whether or not made up." The applicant's product, a synthetic fibre surface made to imitate natural grass for use in sports arenas, squarely fits this description. The product's intended use for sports complexes aligns with the Explanatory Notes, which state that heading 5703 covers turf that imitates grass. Therefore, the goods merit classification under HSN 5703. The applicable GST rate is determined by Entry 144 of Schedule II to Notification No. 1/2017-Central Tax (Rate), which levies a 12% tax - The pure supply of Artificial Turf/Artificial Grass and other sports flooring is classifiable under Chapter Heading 5703 and is subject to 12% GST – Ordered accordingly - Whether the composite supply and installation of Artificial Turf/Artificial Grass on a sports ground constitutes a "works contract" service, and its appropriate Service Accounting Code (SAC) and applicable GST rate - HELD - The transaction qualifies as a "works contract" as defined under Section 2(119) of the CGST Act, 2017 - The act of installing the artificial turf by attaching it to the ground with adhesive makes it an immovable property for the purpose of the contract. The supply is a composite one involving both goods (turf) and services (installation) and is treated as a supply of service under Schedule II of the CGST Act. This service, being a construction service under Heading 9954, is taxable at 18% GST as per Entry No. 3(xii) of Notification No. 11/2017-Central Tax (Rate) - The supply and installation of Artificial Turf/Artificial Grass is a works contract service classifiable under SAC 9954 and is liable to 18% GST.
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