Antisera-based diagnostic kits fall under HSN 3002, not HSN 3822, and attract the concessional GST rate.

Antisera-based diagnostic kits are classified under HSN 3002, not HSN 3822, where their essential character is derived from antisera or other immunological material covered by heading 3002. Heading 3822 applies to prepared diagnostic or laboratory reagents, but excludes diagnostic kits that take their essential character from products of heading 3002. On that basis, CRP Turbilatex, HbAlc and Microalbumin Turbilatex test kits fall under HSN 3002 and attract GST at 5% under Serial No. 180 of Schedule I of Notification No. 1/2017-Central Tax (Rate).

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Issues: Whether the three test kits, namely CRP Turbilatex test kit, HbAlc test kit and Microalbumin Turbilatex test kit, are classifiable under HSN 3002 or HSN 3822, and the GST rate applicable thereto.

Analysis: The products were found to be diagnostic kits whose primary component was antisera or immunological material. Heading 3002 covers antisera, other blood fractions and immunological products, and its explanatory notes specifically include diagnostic kits where the essential character is derived from a product of that heading. Heading 3822 covers prepared diagnostic or laboratory reagents, but expressly excludes diagnostic kits having the essential character of products of heading 3002. On the facts, the kits were held to derive their essential character from antisera-based components, and the classification was supported by the settled principle that the nature and function of the principal component govern tariff classification.

Conclusion: The three test kits are classifiable under HSN 3002 and not under HSN 3822. The applicable GST rate is 5% under Serial No. 180 of Schedule I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017.

Final Conclusion: The ruling settles that antisera-based diagnostic kits remain under heading 3002 where their essential character is derived from that heading, and they are taxable at the concessional rate prescribed for that entry.

Ratio Decidendi: A diagnostic kit is classified under heading 3002, and excluded from heading 3822, when its essential character is supplied by antisera or another product specifically covered by heading 3002.

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