GST Rates on Pharmaceuticals Products and Diagnostic kits

[RAHUL KHAKHRA]

We have query on GST Rate Schedule for goods (18th May-2017) for Chapter 30 (Pharmaceutical products). Against Ch.30, the GST tariff has been specified at 5% for the the products i.e- 'Drugs or medicines including their salts
and esters and diagnostic test kits, specified in List 3 or List 4 appended to the notification No.12/2012-Customs, dated the 17th March, 2012, '

In List.4 - at sr.no (32) Diagnostic kits for detection of HIV antibodies is listed. We understand that as it is part of List. 4, it will fall under GST - 5% tariff. However, HIV antibodies/ kits are fall under Central Excise Tariff -38220012 and above entry/notification is against CH.30 in GST schedule. Moreover, above entry/notification is not listed against chapter.38 in GST schedule. Therefore, there is no clarity that where HIV antibodies/ kits fall under GST schedule tariff (5 % or 18%)

AI Summary

GST classification ambiguity for diagnostic kits may determine reduced or higher tax treatment; clarification is required. A supplier questions whether HIV diagnostic kits listed in a Customs notification and referenced under the GST schedule entry for certain pharmaceutical products attract the lower GST rate, while those kits are classifiable under a central excise heading in a different chapter and that other chapter lacks a corresponding GST entry, creating ambiguity over the applicable GST rate and necessitating administrative clarification.