TaxTMI 
TaxTMI 
2021 (1) TMI 373
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....entry at Serial No.E(8) of List 3 of Entry 257 of Schedule-I and General Entry at Serial No.218 of Schedule-II of Notification No.01/2017-Central Tax (Rate), it is evident that Urine collection bags are specifically covered under the entry at Serial No.E(8) of List 3 of Entry 257 of Schedule I whereas the entry at Sr.No.218 of Schedule-II is a general entry that covers all instruments and appliances used in medical, surgical, dental or Veterinary sciences including scientigraphic apparatus, other electro medical and sight-testing instruments and the GST liability under the said heading is 12% (6% SGST + 6% CGST). 2. The applicant have further stated that for the purpose of classification and the determination of applicable rate for a supply of goods under the CGST Act, 2017, the various Chapter Headings, sub-headings, Interpretative Rules and Chapter Notes under the Customs Tariff Act, 1975 has been adopted by Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 and the explanation appended to the above Notification reads as follows: "(iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter....
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....at covers all instruments and appliances used in medical, surgical, dental or Veterinary sciences including scientigraphic apparatus, other electro medical and sight-testing instruments and the GST liability under the said heading is 12% (6% SGST + 6% CGST). Therefore, applying the principle under Rule 3 of the General Rules of Interpretation of the First Schedule to the Customs Tariff Act, 1975, the heading which provides the most specific description shall be preferred to headings providing a more general description. Hence the Urine collection bag falling under HSN Code 9018 are covered under Serial No.E(8) of List 3 of Entry 257 of Schedule I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5%. 3. The applicant has submitted letter dated 22.07.2020 vide which they have attached the following documents: (i) Doctor's opinion regarding usage of Urine Collection Bag (from 7 doctors). (ii) Photocopies of 2 invoices in respect of Urine Collection Bags. (iii) Catalogue of National Healthcare. (iv) Annexure-A showing list of raw materials used in manufacture of Urine Collection Bags. (v) Annexur....
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...., Infusion set(economy), Umbilical clamp, B.T.set Y-site Luer Lock, Infusion Set Vented Microdrip Y-site and Luer Lock, Infusion Set Non Vented, Measure Volume Set(150 ml) with Y-connector Luer Lock, Measure Volume Set(110 ml.) with Y-connector Luer Lock, Surgical Gloves, Medical Urine Bags, Cord Clamp, Infusion Set Non Vented with Y-Connector and Luer Lock, Infusion Set Vented with Y-connector and Luer Lock, Blood Transfusion Set Non Vented, Blood Transfusion Set Vented and IV set. 3.5 As per the submission of the applicant, the raw materials used in the manufacture of Urine Collection Bags are PVC sheets, ink, PVC tube, closure, Hanger or PP stick, cotton thread, connector cover, packing pouch, gross packing pouch and corrugated box. As per the flow chart given by the applicant, the process of manufacture of Urine Collection Bags is as under: (i) Raw materials received from store. (ii) High frequency welding of PVC sheet. (iii) Bag screen printing by ink. (iv) Assembly of non return valve and outlet. (v) Welding of non reurn valve and outlet. (vi) Bag leak test by air. (vii) Tube, connector cover, hanger assembly w....
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....vices Tax Act, 2017 are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to similar provisions of the GGST Act. 7. As per the submission of the applicant, they are engaged in the manufacture and supply of many kinds of medical devices including Urine collection bags falling under HSN Code 90189099 which are covered under Serial No. Entry (8) of List 3 of Entry 257 of Schedule-I of Notification No:01/2017-Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5%. They have also stated that the subject goods are for disabled in the nature of Urine collection bags falling under HSN Code 90189099 and corresponding Column (3) to Entry No.257 of Schedule-I of the aforementioned Notification reads as "Assistive devices, rehabilitation aids and other goods for disabled, specified in List 3 appended to this Schedule". He has stated that on a plain reading of entry at Serial No. E(8) of List 3 of Entry 257 of Schedule-I and General Entry at Serial No.218 of Schedule-II of Notification No.01/2017-Central Tax (Rate), it is evident that Urine collection ba....
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....ough the catalogue, the list of raw materials used in the manufacture of Urine Collection Bags, the flow chart showing the manufacturing process of the Urine Collection Bags, photocopies of the 2 sample invoices vide which the applicant has been supplied Urine Collection Bags, uses of Urine Collection Bags as given by the applicant as well as the Balance Sheets submitted by them for the financial years 2017-18 and 2018-19. 7.2 The applicant has put forward the following question on which advance ruling is required: "Whether the goods supplied by the applicant are covered under Serial No.E(8) of List 3 of Entry 257 of Schedule I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 issued under the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the 'CGST Act, 2017') and corresponding Notifications issued under the Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as the 'GGST Act, 2017) and the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the IGST Act, 2017) OR Serial No.218 of Schedule-II of the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 attracting GST rate of 12%." 8. On going....
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....) collect urine. The bag is attached to a catheter (tube) that is inside the bladder of the individual. An individual may need to have a catheter and a Urine collection bag (or a urine drainage bag) because of reasons such as urinary incontinence (leakage), urinary retention (not being able to urinate), surgery that made a catheter necessary or any other health problem. The 'Urine collection bag' is attached to an individual and used as detailed hereunder: "One end of the catheter is attached to a bag to collect the urine. The other end is inserted into the urethra of the individual and guided through it until it enters the bladder and urine starts to flow. If the individual is not confined to bed, the drainage bag can be worn strapped to his/her leg and hidden under the clothing." 10.1 From the above, it can be confirmed that the 'Urine collection bags' is indeed a device which can be used in the field of medical sciences only. We are therefore required to find out whether the said product falls under the Heading 9018 or otherwise. In order to examine this aspect, we would be required to go through the Heading 9018 as appearing in the First Schedule to the Customs T....
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....bone holding and other holding instruments 9018 90 24 ---- Chisel, gauges, elevators, raspatonesosteotome, craniotome, bone cutters 9018 90 25 ---- Retractors, spatulaprobes, hooks dialators, sounds, mallets 9018 90 29 ---- Other ---- Renal dialysis equipment, blood transfusion apparatus and haemofiltration Instruments. 9018 90 31 ---- Renal dialysis equipment (artificial kidneys, kidney machines and dialysers) 9018 90 32 ---- Blood tranfusion apparatus 9018 90 33 ---- Haemofiltration instruments. ---- Anesthetic apparatus and instruments, ENT precision instruments, acupuncture apparatus, and endoscopes: 9018 90 41 ---- Anesthetic apparatus and instruments. 9018 90 42 ---- ENT precision instruments. 9018 90 43 ---- Acupuncture apparatus 9018 90 44 ---- Endoscopes ---- Other: 9018 90 91 ---- Hilerial or venous shunts 9018 90 92 ---- Baby incubators 9018 90 93 ---- Heart-lung machines 9018 90 94 ---- Defibrillators 9018 90 95 ---- Fibrescopes 9018 90 96 ---- Laproscopes. 9018 90 97 ---- Vetrasonic lithotrip....
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....opes etc. of heading 90.11 or 90.12. (k) Disc calculators used for calculating lung function, body mass index, etc. of heading 90.17. (l) Mechano-therapy, oxygen therapy, ozone therapy, artificial respiration, aerosol therapy, message apparatus etc. of heading 90.19. (m) Orthopaedic appliances, artificial parts of the body and fracture appliances, including those for animals (heading 90.21). (n) X-ray apparatus (whether medical or not) of heading 90.22. (o) Clinical thermometers (Heading 90.25). (p) Instruments and appliances used in laboratories to test blood, tissue fluids, urine etc., whether or not such tests serve in diagnosis (generally heading 90.27). (q) Medical or surgical furniture, including that for veterinary use (operating tables, examination tables, hospital beds, dentists chair not incorporating dental appliances of this heading etc. (heading 94.02). 10.3 On the other hand, this heading includes specialised measuring instruments used exclusively in professional practice, such as cephalometers, dividers for measuring cerebral lesions, obstetrical pelvimeters etc. It should also be noted that a number o....
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.... (xv) Clips, (suture etc). (xvi) Syringes ( glass, metal, glass and metal, plastics etc.) of all kinds e.g. injection puncture, anaesthesia, irrigation, wound washing, .suction (with or without pump), eye, throat, uterine, gynaecological etc. (xvii) Surgical staplers for inserting staples to close a wound. (B) Special Diagnostic instruments and apparatus: These include: (i) Stethoscopes. (ii) Instruments to measure rate of breathing (to determine basal metabolism.). (iii) Sphygmomanometers, tensiometers, oscillometers,(to measure blood pressure). (iv) Spirometers (to assess lung capacity). (v) Cephalometers. (vi) Pelvimeters. (C) Opthalmic instruments: These fall into various categories: (i) Surgical instruments such as corneal trephines, keratomes. (ii) Diagnostic instruments such as opthalmoscopes; binocular loupes with head bands and binocular type microscopes, consisting of a microscope, an electric lamp with a slit, and a head rest, the whole being mounted on an adjustable support, for the examination of the eyes; tonometers(for testing the intra-ocular tension)....
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.... (M) Acupressure needles: gold, silver, steel. (N) Endoscopes:gastroscopes, thoracocopes, peritoneoscopes, bronchoscopic telescopes, cystoscopes, urethoscopes, resectoscopes, cardioscopes, colonoscopes, nephroscopes, laryngoscopes,etc. Many of these have an operating channel large enough to perform surgery via remote controlled instruments. However, endoscopes for non-medical purposes (fibroscopes) are excluded (heading 90.13). (O) Apparatus incorporating an automatic data processing machine and designed solely for calculating the dose and distribution of therapeutic radiation. (P) Hyperbaric chambers( also known as decompression chambers) which are specially equipped pressure vessels to administer oxygen at elevated atmospheric pressure levels. They are used for the treatment of conditions such as decompression sickness, air embolism, gas gangrene, carbon monoxide poisoning, refractory osteomylitis, skin grafts and flaps, actinomycosis, and exceptional blood loss anaemia. (Q) Lamps which are specially designed for diagnostic, probing, irradiation etc.purposes. Torches, such as those in the shape of a pen are excluded (heading 85.13) as are other....
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....ed to treat diseases such as neuritis, neuralgia, hemiplegia, phlebitis, endocrinal anaemea. Certain of these appliances can be combined with electro-surgical instruments referred to paragraph (7) below. (3) Iono therapy apparatus used to administer active medicaments (sodium or lithium salicylate, potassium iodide, histamine etc.) through the skin by the aid of an electric current. (4) Diathermy apparatus to treat certain diseases which require heat (e.g. rheumatism, neuralgia, dental ailments). These operate by the use of high frequency (shortwave, ultrasonic, ultra shortwaveetc.)currents, and employ electrodes in a variety of forms (e.g. plates, rings, tubes). (5) Electric shock treatment apparatus to treat mental or nervous diseases. (6) Cardiac defibrillators for defibrillating the heart by the application of electric current. (7) Electro-surgical apparatus. These utilise high frequency electric currents, the needle, probe, etc., forming one of the electrodes. They can be employed to cut tissues (electrocuting) with a lancet (electric lancet), or to coagulate the blood (electrocoagulation). Certain combined instruments may, by the u....
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....Tax (Rate) dated 28.06.2017, it is found that the Heading 9018 appears at entry No.218 of Schedule-II of the said notification on which the GST liability is 12% (6% SGST + 6% CGST). The same reads, as under: S.No. Chapter /Heading/ Subheading/Tariff item Description of Goods 218 9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments. 10.6 As per the submission of the applicant, the Urine collection bags are covered under Serial No. Entry (8) of List 3 of Entry 257 of Schedule-I of Notification No:01/2017-Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5% and that the subject goods are for disabled falling under HSN Code 90189099. The said entry reads, as under: S.No. Chapter /Heading/ Subheading/Tariff item Description of Goods 257 90 or any other chapter Assistive devices, rehabilitation aids and other goods for disabled, specified in List 3 appended to this Schedule. List 3 reads, as under: List 3 [See S.No.257 of the Schedule I] (A) (1) Braille writers and braille wr....
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....red to Custom Notification No.50/2017-Customs dated 30.06.2017 (please see para 2.2) wherein an entry similar to the one at Sr.No.257 of Schedule-I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 has been mentioned. However, we find that only the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) is made applicable to GST as per Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 for the purpose of classification of products, hence the said Custom Notification is not being discussed here as it is not applicable to GST. 11. We have also gone through the Entry No.257 of Schedule-I of Notification No.01/2017-Central Tax(Rate) dated 28.06.2017 which reads as: "Assistive devices, rehabilitation aids and other goods for disabled, specified in List 3 appended to this Schedule" as well as Entry 8 of List 3(E) to the Schedule-I of the said Notification which reads as: "(8) External catheters, special jelly cushions to prevent bed sores, stair lift, urine collection bags." We also find that there is specific mention of 'Urine collection bags' at Entry 8 of List 3(E) of the said Schedule. Also, on going through the submission o....
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....nces, which are used in medical sciences, are classificiable under heading 9018 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and appear at Entry No.218 of Schedule-II to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 on which GST liability is 12% (6% CGST + 6% SGST). We also find that there is another entry i.e. Entry No.257 of Schedule-I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 which covers "Assistive devices, rehabilitation aids and other goods for disabled, specified in List 3 appended to this Schedule" and the product "Urine Collection Bag" finds mention at Entry No.8 of List 3(E). The GST liability under the said entry is 5%(2.5% CGST and 2.5% SGST). We also find that "Urine Collection Bag" is an assistive device and that it would be covered under Entry No.257 of Schedule-I of the said notification, irrespective of the fact as to whether the said product is used for disabled people or otherwise. In this regard, since there are 2 separate entries available to the applicant falling under different Schedules of the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017, we will be required to refer to Rule 3 of the....