GST Classification and Exemption for Electrically Operated Temple Instruments
The Gujarat Authority for Advance Ruling decided that electrically operated temple drums do not qualify for handmade musical instrument tax exemptions.
- Ruling
- GUJ/GAAR/RULING/2018/2 dated 5.2.2018
- Dated
- 05 Feb 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- The company asked if their electric temple drum qualifies for a GST exemption.
- The authority classified the product under Heading 9208 of the Customs Tariff.
- The product is ineligible for exemption under Notification No. 2/2017-Central Tax.
- Exemptions for handmade instruments are strictly limited to specific listed items.
In short
The company asked the Gujarat Authority for Advance Ruling (GAAR) whether their electrically operated drum with bell and zalar, used in temples, qualifies for a GST exemption meant for handmade musical instruments. The authority examined whether this product fell under the specific list of tax-free items provided in the government notification.
What has changed
How it worked before
Many businesses assumed that if an item was exempt from tax under the old state-level VAT system, it would automatically remain exempt under the new GST regime.
What has changed
The authority ruled that the product is a mechanical instrument, not a traditional handmade one, and is therefore taxable. This means businesses cannot assume that past tax benefits apply to modern, electrically operated versions of traditional goods.
Who this affects
Manufacturers of musical or ritual instruments who believe their products qualify for handmade instrument tax exemptions.
An example
A manufacturer of electric temple bells asks if their product is exempt from GST because it is used for religious purposes. Based on this ruling, the authority would likely deny the exemption because the bell is electrically operated and not on the specific list of handmade instruments. The manufacturer would then be required to pay the standard GST rate for their product category.
What you should do
If you manufacture similar goods, do not assume this ruling applies to you, as an Advance Ruling only binds the specific business that requested it. You should review the exact list of items in the government notification and consult with a tax professional to determine your product's correct tax classification.
If you do nothing
If you incorrectly claim an exemption based on this ruling or your own interpretation, you risk being penalized for tax evasion during an audit. A tax officer may demand the unpaid tax plus interest and heavy penalties if they determine your product does not meet the strict criteria for the exemption.
The terms explained
- Advance Ruling
- A formal decision provided by tax authorities to a specific business regarding how GST applies to their particular product or service.
- Heading 9208
- A specific category in the Customs Tariff Act used to classify musical instruments like fairground organs, mechanical street organs, and similar musical instruments.
- Pari-materia
- A legal term meaning that two laws or documents cover the same subject matter and should be interpreted similarly.
The ruling in detail
Authority for Advance Ruling
M/s. Shree Vishwakarma Engineering Works
GUJ/GAAR/RULING/2018/2 dated 5.2.2018 · Gujarat
Questions before the authority
- Classification of the product 'Electrically operated Drum with Bell and Zalar'
- Whether the product is eligible for exemption under Sl. No. 143 of Notification No. 2/2017-Central Tax (Rate) dated 28-6-2017
Facts
The applicant manufactures an 'electrically operated drum with bell and zalar' used in temples for Aarti. They use lathe, drill, and welding machines to prepare the body, followed by manual assembly of components. The instrument operates via an electric motor to create rhythm.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification | Heading 9208 Covers musical instruments not falling elsewhere |
| Exemption Eligibility | Not eligible Product not listed in Annexure-II of the notification |
The authority ruled that the product is classifiable under Heading 9208 of the Customs Tariff Act, 1975. It further held that the product is not eligible for the exemption provided under Sl. No. 143 of Notification No. 2/2017-Central Tax (Rate) as it does not correspond to the items listed in the relevant Annexure.
Reasoning
The authority determined that the product is **distinctly known in the market** as an electrically operated instrument and functions via mechanical operation of an electric motor. It observed that the exemption under Sl. No. 143 is restricted to specific indigenous handmade musical instruments listed in Annexure-II of Notification No. 2/2017-Central Tax (Rate), as amended. Since the applicant's product does not match the descriptions in that exhaustive list, the benefit is inadmissible. The authority also clarified that the previous VAT exemption is not pari-materia to the current GST notification.
Provisions relied on
- Section 97(2) of CGST/GGST Act, 2017
- Heading 9208 of the First Schedule to the Customs Tariff Act, 1975
- Notification No. 2/2017-Central Tax (Rate) dated 28-6-2017
- Notification No. 28/2017-Central Tax (Rate) dated 22.09.2017
For the practitioner
This ruling confirms that the **exemption for indigenous handmade musical instruments** is strictly limited to the items explicitly listed in the Annexure to the relevant notification. It serves as a warning that previous state-level VAT exemptions do not automatically carry over to the GST regime. Practitioners should note that mechanical or electrical operation may disqualify an item from being classified as a traditional handmade instrument.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/guj-2018-2_dt_05-02-18_vishwakarma.pdf
Legibility of the scan, as read: high.
Prepared 12-10-2026.
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