Classification of Vaccine Carrier & Cold Box: 9% Tax Rate for Insulated Ware

The ruling determined that Vaccine Carrier and Vaccine Cold Box are classified under Chapter 39, subheading 39231030 as insulated ware, subject to a 9% tax rate under both Central and State Tax. The products were found not to fall under Chapter 90 for medical instruments, as they primarily function as insulated containers rather than medical devices. The decision is applicable within the jurisdiction of the Authority for Advance Ruling, Uttar Pradesh, under the provisions of the CGST Act, 2017.

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Issues Involved:
1. Classification of Vaccine Carrier and Vaccine Cold Box under Chapter 90 or Chapter 39.
2. Appropriate rate of tax under Central and State Tax for the classified items.

Detailed Analysis:

Issue 1: Classification under Chapter 90 - Medical or Surgical Instruments and Apparatus
- The applicant argued that Vaccine Carrier and Vaccine Cold Box should be classified under Chapter 90, subheading 90189099, as medical appliances. They cited the WHO's specifications and the exclusive use of these products in medical settings.
- The applicant referenced several legal precedents and definitions to support their claim that these products are medical devices designed for specific tasks of transporting and storing vaccines under controlled temperatures.
- The applicant highlighted that these products are manufactured according to WHO and UNICEF standards and are not used for ordinary purposes like picnic boxes.

Issue 2: Classification under Chapter 39 - Plastics and Articles Thereof
- The jurisdictional GST officer suggested that these products should be classified under Chapter 39, subheading 39231030, as insulated ware, given their construction from High Density Polyethylene (HDPE) and insulation with Polyurethane Foam (PUF).
- The officer noted that despite being manufactured to WHO specifications, the primary function of these products is as insulated containers, akin to other insulated wares.

Discussion and Findings:
- The authority examined the submissions and found that the issue pertains to the classification of goods under Section 97(2)(a) of the CGST Act 2017.
- They referred to the Customs Tariff Act, 1975, noting that Chapter 90 covers instruments and appliances used in medical science, but the Vaccine Carrier and Vaccine Cold Box do not independently maintain cold temperatures without ice packs, thus not fitting the classification of medical instruments.
- The authority emphasized that these products are insulated containers as per UNICEF literature and the applicant's description, aligning more closely with Chapter 39, subheading 39231030, which covers insulated ware.
- They also noted that as per Chapter Note 1(o) of Chapter 90, goods of plastics are not covered under Chapter 90.

Ruling:
1. Question 1: Vaccine Carrier & Vaccine Cold Box do not fall under Chapter 90 (Medical or Surgical Instruments and Apparatus) and thus do not attract a tax rate of 6% under Central and State Tax.
2. Question 2: Vaccine Carrier & Vaccine Cold Box fall under Chapter 39, subheading 39231030 as "Insulated ware," attracting a tax rate of 9% under Central and State Tax.
3. Question 3: Not applicable, as the products are classified under Chapter 39.

Conclusion:
The ruling clarifies that Vaccine Carrier and Vaccine Cold Box are classified under Chapter 39, subheading 39231030 as insulated ware, attracting a 9% tax rate under both Central and State Tax. This ruling is valid within the jurisdiction of the Authority for Advance Ruling, Uttar Pradesh, and subject to provisions under Section 103(2) of the CGST Act, 2017, until declared void under Section 104(1) of the Act.

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