Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 179677
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
[…][XYZ] Stone Crushers
Thank you for your facsimile dated September 11, 2016, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to stone crushers.
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand that:
1. […] (the Company) is registered for GST/HST purposes.
2. The Company is making supplies of a new product line, […][XYZ] Stone Crushers, in Canada. According to [XYZ]’s website (Footnote 1) and your submission, the [XYZ] stone crusher is available in various models with various working widths which are suitable for farm or non-farm use. The model numbers […][Models A] and […][Model B] are promoted as suitable for farm and non-farm use. […][Models C] and […][Model D] are designed to also grind stumps and wood in both farm and non-farm use. […][Models E] and […][Model F] are promoted for non-farm use only.
3. A stone crusher is attached behind a tractor and when pulled over an area crushes the stones on that surface using a system of hammers and anvils and discards the crushed stones immediately back onto the ground. It does not remove the stones or the resulting crushed material.
RULING REQUESTED
You would like to know the GST/HST status of the supply of a [XYZ] Stone Crusher.
RULING GIVEN
Based on the facts set out above, we rule that the supply of a [XYZ] Stone Crusher is a taxable supply that does not qualify for zero-rating under Part IV of Schedule VI.
EXPLANATION
Part IV of Schedule VI sets out the agricultural and fishing goods which are zero-rated for the purposes of GST/HST. Pursuant to section 10 of Part IV of Schedule VI, the supply of prescribed property is a zero-rated supply. The Schedule to the Agriculture and Fishing Property (GST/HST) Regulations (the Regulations) identifies those items that are prescribed property for the purposes of section 10. When property is listed in the Regulations and supplied by way of sale, the supply is a zero-rated supply.
The Regulations include mechanical rock or stone pickers as well as rock or root rakes and rock or root wind-rowers. The stone crusher is not included in the Regulations and, as such, there is no provision within Part IV of Schedule VI to zero-rate the sale of a stone crusher. As a result, the stone crusher is subject to the GST/HST.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 905-721-5217. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Jill McDonald
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
FOOTNOTES
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