GST On Turf Materials / GST On Artificial Turf Supplies / GST Rate
for Artificial Turf Supplies and Installation:
Background
of the Case
M/s New Horizon
Development Company Pvt. Ltd., based in Bengaluru, proposed to start a business
involving the supply and installation of Artificial Turf (Artificial Grass)
and other sports flooring materials. These products are used in sports grounds
like football fields, tennis courts, and other recreational areas.
The company approached
the Authority for Advance Ruling (AAR) to clarify the applicable HSN codes
and GST rates for:
1. Pure
supply of artificial turf/grass as goods.
2. Supply
and installation, which involves composite works contract
services.
· AAR
No. KAR ADRG 22/2025
· Date:
28th July 2025
·
Court:
Authority for Advance Ruling, Karnataka
·
Applicant:
M/s New Horizon Development Company Private Limited
Questions
Before the Authority
1. What
is the HSN code and GST rate for pure supply of artificial
turf/artificial grass?
2. What
is the HSN/SAC code and GST rate for supply and installation (works
contract) of artificial turf/artificial grass and sports flooring?
Applicant’s
Submissions and Interpretation
- The applicant stated they intend to
import and supply a range of artificial turf products from Europe and the
Middle East, many of which are certified by international sporting
bodies like FIFA, FIH, and ITF.
- Two scenarios were highlighted:
- Pure sale
of artificial turf as material.
- Supply and installation,
which involves site-specific fitting and adhesive-based application,
qualifying as a works contract.
Classification
as Goods
- Turf is a tufted textile floor
covering made of synthetic yarns.
- As per Notification No.
1/2017-Central Tax (Rate), such products fall under HSN 5703.
- Entry No. 144 of Schedule I (6%)
covers:
“Carpets and other
textile floor coverings (including turf), tufted, whether or not made up”
GST Rate: 12% (6% CGST + 6% SGST)
Classification
as Works Contract Service
- Where turf is installed permanently
on-site using adhesives, it becomes part of immovable property.
- The applicant classified such
installation under SAC 995428 — "General construction services
of outdoor sport and recreation facilities".
- Under Section 2(119) of the CGST Act,
2017, this qualifies as a works contract, a composite supply
involving transfer of goods and services related to immovable property.
- Cited Notifications:
- Entry No. 3(xii) of Notification No.
11/2017-Central Tax (Rate) — applicable to general construction services
not covered under lower-rate categories.
- Resulting GST Rate: 18% (9% CGST
+ 9% SGST)
AAR’s
Findings and Decision
1. Classification of Pure
Supply (As Goods)
- The turf qualifies as a tufted
textile floor covering under HSN 5703, specifically 5703.3100.
- It imitates natural grass and is used
in indoor and outdoor sports grounds.
- Held:
Pure supply of artificial turf/grass attracts 12% GST under Entry
144 of Notification No. 1/2017-Central Tax (Rate).
2. Classification of
Supply with Installation (Works Contract)
- Turf installed using adhesives and
based on site-specific designs becomes part of immovable property.
- Installation qualifies as a works
contract service under SAC 995428 (Outdoor sport and recreation
facilities).
- The service meets the legal
definition of works contract and is considered supply of service as
per Schedule II to the CGST Act.
- Held:
Supply and installation of artificial turf/grass is a works contract,
taxable at 18% GST under Entry 3(xii) of Notification No. 11/2017.
Final
Ruling Summary
|
Type
of Supply
|
Classification
|
GST
Rate
|
|
Pure
supply of Artificial Turf/Grass
|
HSN
5703
|
12%
(6+6)
|
|
Supply
+ Installation (works contract)
|
SAC
995428 (Services)
|
18%
(9+9)
|
Conclusion
This ruling provides
clarity to businesses engaged in sports infrastructure projects.
Artificial turf supplied as goods attracts 12% GST, while installation
services involving permanent fixing to land qualify as works contract,
attracting 18% GST.
This distinction is
essential for suppliers and contractors to apply correct GST rates based on the
nature of the transaction — whether pure supply or installation-based
service.
Disclaimer: All the Information is based on the notification, circular advisory and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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