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of <h1>Classification of Laboratory Reagents for Food Safety Testing under GST</h1> <h3>In Re: M/s. Neogen Food and Animal Security (India) Private Ltd.</h3> In Re: M/s. Neogen Food and Animal Security (India) Private Ltd. - 2021 (52) G. S. T. L. 459 (A. A. R. - GST - Ker.) Issues Involved:1. Classification of laboratory reagents for rapid testing of food safety parameters.2. Applicable rate of GST for the import and supply of these laboratory reagents.Issue-wise Detailed Analysis:1. Classification of Laboratory Reagents for Rapid Testing of Food Safety Parameters:The applicant, M/s. Neogen Food and Animal Security (India) Private Ltd, sought clarity on whether their laboratory reagents should be classified under Tariff Item 3822 00 90 of the Customs Tariff Act. The laboratory reagents are used for testing processed and unprocessed foods, juices, cereals, nuts, spices, and various raw materials. The applicant argued that these reagents should be classified under Heading 3822, which covers 'Diagnostic or laboratory reagents on a backing, prepared diagnostic or laboratory reagents whether or not on a backing, other than those of heading 3002 or 3006; certified reference materials.'The Hon’ble Karnataka Appellate Authority for Advance Ruling had previously ruled that reagents under Chapter Heading 3822 are covered under the entry at SI No. 80 of Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017. The applicant relied on this precedent, asserting that their laboratory reagents fall under the specific entry at SI No. 80 of Schedule II, which covers 'All diagnostic kits and reagents.'2. Applicable Rate of GST:The applicant sought clarity on whether the reagents should attract a GST rate of 12% under Entry No. 80 of Schedule II or 18% under the residuary Entry No. 453 of Schedule III of the Notification No. 01/2017-Integrated Tax (Rate) dated 28-06-2017. The applicant contended that the specific entry for laboratory reagents at SI No. 80 should take precedence over the general residuary entry at SI No. 453, which applies to goods not specified in other schedules.Discussion and Conclusion:The Authority for Advance Ruling examined the matter in detail, considering the classification principles under the Customs Tariff Act, 1975, and relevant judicial precedents. The General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975, were applied, emphasizing that specific entries should be preferred over general or residuary entries.The Authority noted that the laboratory reagents supplied by the applicant are appropriately classifiable under Customs Tariff Heading 3822 00 90, which includes diagnostic and laboratory reagents other than those of heading 3002 or 3006. The reagents in question do not fall under these headings and are therefore classified under Heading 3822.The entry at SI No. 80 of Schedule II of Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017 explicitly covers 'All diagnostic kits and reagents' under Chapter Heading 3822. Consequently, the laboratory reagents for rapid testing of food safety parameters supplied by the applicant fall under this specific entry and attract a GST rate of 12%.Ruling:The laboratory reagents for rapid testing of food safety parameters supplied by the applicant are appropriately classifiable under Customs Tariff Heading 3822 00 90 and are liable to GST at the rate of 12% as per entry at SI No. 80 of Schedule II of Notification No. 01/2017 Integrated Tax (Rate) dated 28.06.2017.
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