Steel structure classification governs GST rate for an artificial insemination crate used in veterinary handling.

An artificial insemination crate made of iron and steel tubes and pipes, used to restrain cattle during treatment and artificial insemination, was classified as a steel structure under tariff item 7306 because it was not an instrument, appliance or apparatus used in veterinary science under tariff item 9018. On that classification, the applicable GST rate was the rate prescribed for the relevant entry under Notification No. 01/2017-Central Tax (Rate), namely 18%.

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Issues: (i) Whether AI crate (Artificial Insemination Crate)/Travis is classifiable under tariff item 7306 or tariff item 9018; (ii) What is the applicable GST rate on the product.

Issue (i): Whether AI crate (Artificial Insemination Crate)/Travis is classifiable under tariff item 7306 or tariff item 9018

Analysis: The product was found to be a structure made of iron and steel tubes and pipes, used for restraining cattle during treatment and artificial insemination. The description of tariff item 9018 covers instruments and appliances used in medical, surgical, dental or veterinary sciences. The product was not shown to be an instrument, appliance, or apparatus; instead, its physical form and use brought it within the scope of tubes, pipes and hollow profiles of iron or steel under tariff item 7306.

Conclusion: The product is classifiable under tariff item 7306 and not under tariff item 9018.

Issue (ii): What is the applicable GST rate on the product

Analysis: Once classified under tariff item 7306, the product attracted the rate prescribed under Notification No. 01/2017-Central Tax (Rate) for the relevant schedule entry. The ruling applied the notified rate applicable to the classification so determined.

Conclusion: The applicable GST rate is 18%.

Final Conclusion: The product is treated as a steel structure falling under tariff item 7306, and the applicable tax consequence follows that classification.

Ratio Decidendi: A product that is structurally a steel or iron tube-and-pipe assembly, and not an instrument, appliance, or apparatus used in veterinary science, is to be classified under tariff item 7306 rather than tariff item 9018, with tax determined accordingly.

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