In re Kantaben Rameshbhai Chaudhari, Krishna Entperises (GST AAR Gujarat)
This discussion centers around a critical case from the Authority for Advance Rulings (AAR) in Gujarat: ‘In re Kantaben Rameshbhai Chaudhari, Krishna Enterprises.’ The subject matter is the classification and taxation of veterinary instruments, specifically the AI Crate/Travis (Artificial Insemination Crate), under GST.
According to the ruling, the AI Crate/Travis is classified under Tariff Item (TI) 7306 of the Customs Tariff Act. This product, used primarily for the medical treatment and artificial insemination of animals, is subjected to GST at a rate of 18% (9% CGST and 9% SGST). Despite the applicant’s view that the product should fall under TI 9018, the AAR ruled in favor of TI 7306 due to the product’s structure, made predominantly of iron and steel tubes and pipes. This decision aligns with the Andhra Pradesh AAR ruling in a similar case.
(1) What is the rate of tax applicable for veterinary instruments, which is known as AI crate (Artificial Insemination Crate)/Travis?
The product AI crate (Artificial Insemination Crate)/Travis is leviable to GST at the rate of 18% [9% CGST and 9% SGST).
(2) Classification of the aforementioned product?
The product in question viz AI crate (Artificial Insemination crate)/Travis is classified under TI 7306 of CTH.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT
Kantaben Rameshbhai Chaudhari, Krishna Entperises (Trade name), Shop No. 5/A, Rajshree Complex, 1 st floor, Manav Ashram Chokdi, Mehsana, Gujarat-384 001 [for short—`applicant is registered under GST and their GSTIN is 24BRXPC8776L1ZU.
2. The applicant is engaged in the manufacture of veterinary instruments known as Al Crate (Artificial Insemination crate)/travis. This equipment/ instrument is used for medical treatment of animal. It is installed at Veterinary Dispensary
3. In the application, the size of the product so manufactured is provided which is as under:
Approx. size: Length 167.5 cm; Width 75 cm
Front height: 150 cm; Back height: 120 cm
Length of cross support: 120 cm
Foundation plate: 7.58 * 7.5 * 3 mm
Securing ring: 1.2 cm MS round bar.
4. The procedure adopted for manufacture of AI Crate (Artificial Insemination crate)/travis is also provided which briefly, is as under:
