GST On Artificial Turf Supply And Installation | AAR

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  • Last Updated on 23 August, 2025

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GST on artificial turf AAR

Case Details: New Horizon Development Company (P.) Ltd., In re - [2025] 177 taxmann.com 403 (AAR - KARNATAKA)

Judiciary and Counsel Details

  • Prathap Kumar S. & Kalyanam Rajesh Rama Rao, Member
  • Veeresh S. Kandgol, CA for the Applicant.

Facts of the Case

The applicant was engaged in trading of sports infrastructure and flooring materials, including artificial turf/artificial grass. The question before the Authority was regarding the classification and applicable GST rate on supply of artificial turf/artificial grass, both in the form of pure supply of goods and when supplied along with installation services.

AAR Held

The Authority observed that artificial turf/artificial grass is a surface of synthetic fibres designed to resemble natural grass and is commonly used in sports complexes, arenas, lawns, and commercial applications. Being more durable and maintenance-friendly than natural grass, it qualifies as tufted turf of man-made textile material. Accordingly, the pure supply of artificial turf/artificial grass was held to be classifiable under Heading 5703 of the Customs Tariff and exigible to GST at 12% in terms of Entry No. 144 of Schedule II of Notification No. 1/2017-Central Tax (Rate).

Further, in cases where the applicant undertakes both supply and installation of artificial turf/artificial grass, the Authority noted that the turf is affixed to the earth (such as a football ground) using adhesive, making it part of immovable property. Such a contract involves transfer of property in goods in execution of the work and qualifies as a “works contract” as per Schedule II to Section 7 of the CGST Act, 2017. Hence, the composite supply of goods and installation service was held to be classifiable under SAC 9954 as a construction service of immovable property and liable to GST at 18% in terms of Entry No. 3(xii) of Notification No. 11/2017-Central Tax (Rate). Thus, the AAR held that pure supply of artificial turf/artificial grass is taxable at 12% GST, whereas supply along with installation, being a works contract, attracts GST at 18%.

List of Cases Referred

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied