2018 (6) TMI 705 – AUTHORITY FOR ADVANCE RULINGS, KERALA – 2018 (13) G. S. T. L. 469 (A. A. R. – GST), [2018] 2 GSTL (AAR) 53 (AAR) – Classification of goods – implants for joint replacements – rate of tax – whether the products get covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 0112017 – Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5% or Serial No. 221 of Schedule II of the Notification No. 0112017 – Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 12%?
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Held that:- The implants for joint replacement is clearly and most specifically covered under Sl No. E(9) of List 3 of Entry 257 of Schedule I attracting 5%GST. Further, there is a similar entry under Sl No. 578 – List 30 Entry E(9) of Notification No. 5012017 – Customs dated 30.06.2017 where under the effective rate of Basic Customs Duty is Nil.
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On a plain reading of entry at Serial No. E(9) of List 3 of Entry 257 of Schedule I and entry at Ser
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Notification No. 0112017 – Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5%. – ORDER No. CT/4683/2018-C3 Dated:- 29-5-2018 – Mr. Senthil Nathan S, IRS, Joint Commissioner, Office of the Commissioner of Central Tax & Cental Excise, Thiruvananthapuram And Mr. N. Thulaseedharan Pillai, Joint Commissioner (General), Office of the Commissioner of State Taxes, Thiruvananthapuram RULING 1. Shri. Gopal Gireesh, Veena Chemicals, Thiruvananthapuram a retail dealer of implants for joint replacements (hereinafter called the applicant) is a registered person having GSTIN 32ADXPG4961E1ZF. The applicant has preferred an application for Advance Ruling on the rate of tax in respect of the commodities listed in the Annexure to the Application. 2. The applicant has stated in the application that all the commodities listed in the Annexure are implants for handicapped patients in the nature of Joint Replacements falling under HSNCode 90213100 and are included under Schedule I. The
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covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 0112017 – Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5% or Serial No. 221 of Schedule II of the Notification No.' 0112017 – Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 12%. The products listed in Annexure are falling under Customs Tariff Head 90213100 – Artificial Joints. Such implants for joint replacement are specifically covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 0112017 – Central Tax (Rate) dated 28.06.2017. Sl. No. Chapter/Heading/Sub -Heading/Tariff Item Description of goods (1) (2) (3) 257 90 or any other Chapter Assistive devices, rehabilitation aids and other goods for disabled, specified in List 3 appended to this Schedule List 3: E(9): Instruments and implants for severely physically handicapped patients and joints replacement and spinal instruments and implants including bone cement. Schedule with
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otification No. 01/2017 Central Tax (Rate) dated 28.06.2017 reads as follows; Explanation: – (1) In this Schedule, tariff item, heading, sub-heading and Chapter shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (2) The rules for the interpretation of the first Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of above table. Accordingly, the appropriate classification as determined under the Customs Tariff Act, 1975 including on an application of the Chapter Notes and General Explanatory Notes, would apply for the purpose of levy of GST. 6. As per Rule 3 of the General Rules for Interpretation of Import Tariff the heading that provides the most specific description shall be preferred to headings providing a more general description. Rule 3 r
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ts and joints replacement and spinal instruments and implants including bone cement. The industry dealing in joint replacement products also avails benefit of Nil BCD on import of implants for joint replacement under the above entry.There needs to be harmonization in the interpretation I applicability I coverage of entries under the Customs Tariff and GST. Shri. Lalji Vijayan, Chartered Accountant representing the applicant further reiterated and confirmed that all the commodities as listed in the Annexure to the application by their technical I trade names are nothing but implants for joint replacement falling under Customs Tariff Heading 90213100 – Artificial Joints. In support of the above, the applicant produced sample copies of the invoices issued by M/s Johnson and Johnson Pvt Ltd in which the items 'are described as per their technical/trade name and the HSN Code shown' as 90213100. 7. On the basis of the facts disclosed in the application and the written and oral submis
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