In re Neogen Food and Animal Security (India) Private Ltd. (GST AAR Kerala)
Reagents referred to in Heading 3822 of the Customs Tariff includes both diagnostic and laboratory reagents. The Tariff Heading 3002 pertains to human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera, other blood fractions and immunological products, whether or not modified or obtained by means of biotechnological processes; vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar products and the Tariff Heading 3006 pertains to pharmaceutical goods specified in note 4 of chapter 30. Admittedly, the products supplied by the applicant are laboratory reagents which are predominantly used in food testing lab or in the field for testing of processed and unprocessed food. Hence, they do not fall under any of the sub – headings / tariff items under Heading 3002 or 3006 and therefore, they are appropriately classifiable under Customs Tariff Heading 3822 00 90.
The entry at Sl No. 80 of Schedule II of Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017 reads as follows;
| S1 No. | Chapter / Heading / Sub- heading / Tariff item | Description of Goods |
| 80 | 3822 | All diagnostic kits and reagents |
The description in the above entry is “All diagnostic kits and reagents”. Hence, it is evident that all reagents falling under Customs Tariff Heading 3822 are covered under the entry at sl. No. 80 of Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017 extracted above.
On the basis of the discussion as above, we conclude that the laboratory reagents for rapid testing of foods safety parameters supplied by the applicant is appropriately classifiable under Customs Tariff Heading 3822 00 90 and is liable to GST at the rate of 12% as per entry at Sl No. 80 of Schedule II of Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KERALA
M/s. Neogen Food and Animal Security (India) Private Ltd (hereinafter referred to as the applicant) is incorporated under the Indian Companies Act, with its registered office at Cochin in the State of Kerala.
2. At the outset, the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under.
3. The applicant requested for advance ruling on the following;
Whether Entry No. 80 in Schedule H to the Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017 (as amended) is applicable for import as well as supply of “Laboratory reagents for rapid testing of food safety parameters”, attracting a levy of integrated tax at the rate of 12% or Entry No.453 to Schedule III, attracting a levy of integrated tax at the rate of 18%?
4. Brief facts of the case:
4.1. The applicant is engaged in contract of chemical and microbiological testing services and trading (import and sale) of Neogen Group products in the Indian market. The range of trading items includes Neogen’s food safety products comprising of kits and laboratory reagents for dangerous or unintended substances’ testing for food safety parameters. Their products are used by food processing companies, regulatory bodies etc to manage the risk in food caused by pathogens and toxic substances. The exhaustive list of about 254 products dealt by them that are predominantly used for food testing in lab / field / mobile vans/ for testing of processed and unprocessed foods, juices, cereals, nuts, spices etc and raw materials like wheat, rice, corn, fruits, and also milk (aflatoxin), poultry (egg allergen) and fish products in some cases (histamine) was enclosed as Annexure – I to the application.
4.2. Presently, at the time of import they are classifying these products as “Laboratory reagents” under the Tariff Item 3822 00 90 of the Customs Tariff Act. The issue for consideration is one of rate of GST on import and supply of the laboratory reagents classifiable under Tariff item 3822 00 90, in terms of GST rate notification. Sl.No. 80 of the 2nd Schedule of the IGST Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017 (as amended) provides IGST rate to the goods as under:
