In re Soxa Formulations and Research Pvt. Ltd. (GST AAR Gujarat)
M/s. Soxa Formulations and Research Pvt. Ltd., Gujarat, sought an advance ruling on classification and applicable GST rates for two products—“Dry Citrate Powder” and “Bicarbonate Bag.” The applicant manufactures Dry Citrate Powder intended for medical use for patients undergoing haemodialysis and had been classifying it under HSN 90189031 as a medical device attracting 12% GST. However, during customs assessment, it was suggested that the product should instead be classified under Chapter 29 as an organic chemical under HSN 29181590, attracting 18% GST. The applicant also sought confirmation of classification of Bicarbonate Bag under HSN 28363000 at 18% GST.
The CGST authority supported classification of both products under HSN 90189031, citing that they were categorized as Class ‘C’ medical devices by CDSCO. However, the State Tax authority disagreed regarhttps://taxguru.in/goods-and-service-tax/govt-notifies-revised-gst-rates-wide-array-goods-wef-22nd-sep-2025.htmlding Dry Citrate Powder, stating that it did not qualify as a medical instrument, appliance, or apparatus under Chapter 90, and noted that the applicant itself classified Bicarbonate Bag under HSN 28363000.
The Authority examined the competing entries under Chapters 90 and 29. Chapter 90 covers instruments and appliances used in medical or surgical sciences, including artificial kidney (dialysis) apparatus. Referring to dictionary meanings and Supreme Court guidance that undefined terms must be interpreted through common meaning, the Authority observed that “instrument,” “apparatus,” and “appliance” refer to tools, devices, or collections of instruments for specific purposes. Dry Citrate Powder, being a chemical compound composed of sodium chloride, potassium chloride, magnesium chloride, calcium chloride, sodium acetate, citric acid, and dextrose, could not be considered an instrument, appliance, or apparatus.
