Diagnostic reagents only: pharmaceutical reference standards fall in the residuary GST entry, not Schedule II.

Pharmaceutical Reference Standards classified under HSN 3822 00 90 were analysed against Entry No. 80 of Schedule II to Notification No. 1/2017-Integrated Tax (Rate). The expression "all diagnostic kits and reagents" was read, applying ejusdem generis, as covering only diagnostic kits and diagnostic reagents, not every reagent under heading 3822. As the goods were laboratory reagents and not diagnostic reagents, they were excluded from Entry No. 80 and, being goods of Chapter 3822 not specifically covered elsewhere, fell under the residuary Entry No. 453 of Schedule III. The stated tax consequence is IGST at 18%.

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Issues: Whether Pharmaceutical Reference Standards classifiable under HSN 3822 00 90 are covered by Entry No. 80 of Schedule II to Notification No. 1/2017-Integrated Tax (Rate) dated 28.06.2017, or fall under Entry No. 453 of Schedule III.

Analysis: The goods were accepted as reagents and as laboratory reagents falling under HSN 3822 00 90. The dispute turned on whether the expression "all diagnostic kits and reagents" in Entry No. 80 covered every reagent under heading 3822 or only diagnostic kits and diagnostic reagents. Applying the wording of the entry and the principle of ejusdem generis, the entry was held to extend only to diagnostic kits and diagnostic reagents. Since the goods in question were laboratory reagents and not diagnostic reagents, they were not covered by Entry No. 80. Being goods of Chapter 3822 not specifically covered elsewhere in Schedules I, II, IV, V or VI, they were treated as falling under the residuary entry in Schedule III.

Conclusion: Pharmaceutical Reference Standards under HSN 3822 00 90 are not covered by Entry No. 80 of Schedule II and are covered by Entry No. 453 of Schedule III, attracting IGST at 18%.

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