Specific GST classification for joint replacement implants prevails over general artificial parts entry, attracting a lower tax rate.

Joint replacement implants classifiable under HSN 90213100 are covered by the specific entry for instruments and implants for severely physically handicapped patients and joint replacements in Serial No. E(9) of List 3 of Entry 257 of Schedule I to Notification No. 01/2017-Central Tax (Rate). Applying the Customs Tariff classification framework and General Rules for Interpretation, the specific description prevails over the broader entry for artificial parts of the body under Schedule II. The implants therefore fall under the Schedule I entry and attract GST at 5%.

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Issues: Whether implants for joint replacements falling under HSN Code 90213100 are classifiable under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017, attracting GST at 5%, or under Serial No. 221 of Schedule II of the same notification, attracting GST at 12%.

Analysis: The entry at Serial No. E(9) of List 3 of Entry 257 of Schedule I specifically refers to instruments and implants for severely physically handicapped patients and joint replacements, while Serial No. 221 of Schedule II is a wider and more general entry covering artificial parts of the body and other appliances. The classification under the GST notification is to be determined by reference to the First Schedule to the Customs Tariff Act, 1975, and the General Rules for Interpretation applicable thereto. Applying Rule 3, the heading giving the most specific description prevails over a general description. On that basis, joint replacement implants are specifically covered by the Schedule I entry.

Conclusion: The implants for joint replacements falling under HSN Code 90213100 are covered by Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 and are taxable at 5% GST.

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