In re Accurex Biomedical Private Limited (GST AAAR Maharashtra)
CRP Test kit and HbA1c Test kit to be classified under HSN code 3002 and will attract 5% GST
The AAAR, Maharashtra in the matter of M/s. Accurex Biomedical Private Limited [Order No. MAH/AAAR/M-RMI 12- /2022-23, dated September 30, 2022] set aside the order passed by AAR, Maharashtra, ruling that C-Reactive Protein (“CRP”) Test kit and Hb1Ac Test kit (“Test Kits”) fall under HSN Code 3822 and not under HSN code 3002, whereas the same are covered by. Held that the Test Kits will be attracting Goods and Services Tax (“GST”) at the rate of 5% in terms of the entry at SL No. 180 of the Schedule I to the Notification No. 01/2017-Central Tax (Rate) dated June 28, 2017 (“the Goods Rate Notification”) read with entry at SI. No. 125 of the List I appended to the Schedule I to the Goods Rate Notification.
Facts:
M/s Accurex Biomedical Private Limited (“the Appellant”) is engaged in the business of supply of various diagnostic reagents. The Appellant filed an application for advance ruling before the AAR, Maharashtra in respect of the classification of two products i.e. Turbilatex CRP Infinite, which was a CRP Test kit and HbA1c Infinite, which was an HbA1c test kit.
The AAR vide an order dated October 11, 2021 (“the Impugned Order”) ruled that the Test Kits will not fall under HSN Code 3002 as the test kits are not agglutinating sera by themselves, rather they are diagnostic kits which may work on the principle of ‘agglutinating sera’. Therefore, Test Kits will fall under HSN Code 3822 at Sr. No 80 under Schedule-II of the Goods Rate Notification as “diagnostic kits and reagents”, attracting GST at the rate of 12%. The AAR also ruled that as per Sr. No. 7 of Notification No. 05/2021-Central Tax (Rate) dated June 14, 2021 (“the Concessional Rate Notification”), the GST rate on certain products, including C-Reactive Protein (“CRP”), falling under Heading 3822 has been reduced to 5% which was valid up to September 30, 2021. So, the rate of GST on CRP was reduced to 5% up to September 30, 2021 and now the rate is back at 12%.
Hence, the Appellant filed this appeal on the grounds that the Test Kits supplied by the Appellant is a composite supply and hence, the same would be classifiable under CSH 3002 and that the reliance placed on Sr. No. 7 of the Concessional Rate Notification for deciding classification of the Test Kits under CSH 3822, is absurd and perverse.
the Jurisdictional officer submitted that the CRP is a protein made reagent that does not fall under HSN code 3002 and is taxable at the rate of 12% under GST. Further, that HbA1c is haemoglobin A1c, and important diagnostic tool but it is not specified in List l appended to the Schedule I and it is also not agglutinating sera, thus, it falls under the HSN code 3822. Therefore, the GST rate applicable on supply of Test Kits is 12%.
Issue:
Whether the Test Kits fall under HSN code 3002 and taxable at the rate of 5% in terms of the entry at SL No. 180 of the Schedule I to the Goods Rate Notification?
Held:
The AAAR, Maharashtra in Order No. MAH/AAAR/M-RMI 12- /2022-23 held as under:
