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

Uncertainty Over GST Rate for HIV Diagnostic Kits: 5% or 18%? Classification Discrepancy Raises Questions. A query was raised regarding the applicable Goods and Services Tax (GST) rate for pharmaceutical products, specifically diagnostic kits for HIV antibodies. The GST Rate Schedule for Chapter 30 lists a 5% tariff for certain drugs, medicines, and diagnostic kits specified in List 3 or List 4 of a 2012 customs notification. Although HIV diagnostic kits are included in List 4, they fall under Central Excise Tariff 38220012, not Chapter 30. This discrepancy creates uncertainty about whether these kits are subject to a 5% or 18% GST rate, as they are not listed under Chapter 38 in the GST schedule.