In re Beacon Diagnostics P Ltd (GST AAR Gujarat)
An advance ruling by the Gujarat Authority for Advance Ruling (AAR) has determined that three specific diagnostic test kits manufactured by Beacon Diagnostics P Ltd. are classified under HSN 3002, a category for pharmaceuticals, and are subject to a 5% GST rate. The ruling stemmed from a dispute over whether the kits should be classified under HSN 3002 (Agglutinating Sera) or HSN 3822 (diagnostic kits and reagents), which carries a higher tax rate.
The Applicant’s Case
Beacon Diagnostics P Ltd., a manufacturer of diagnostic reagents, sought a ruling on the classification and GST rate for three of its products:
- CRP Turbilatex test kit (for C-Reactive Protein in human serum)
- HbA1c test kit (for hemoglobin A1c in human blood)
- Microalbumin Turbilatex test kit (for microalbumin in human urine)
The company argued that despite being sold as “kits,” the products’ primary component is antisera, a key substance used for diagnostic purposes. It contended that the kits’ essential character is derived from the antisera, which constitutes a significant volume of the product (70-80% in the CRP kit, 65% in the HbA1c kit, and 70-75% in the Microalbumin kit).
The applicant’s submission highlighted that under the Central Sales Tax (CST) and Central Excise Tariff Act (CETA), courts have consistently held that “antisera” under Chapter 3002 includes kits derived from it. The company further argued that only diagnostic reagents that cannot be classified under HSN 3002 would fall under HSN 3822.
