TaxTMI 
TaxTMI 
2026 (2) TMI 1318
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....it liable to GST rate of 18%. 4. In view of the foregoing, the applicant has sought a ruling on the below mentioned question viz: i. Whether the product Dry Citrate Powder is correctly classifiable under HSN code 90189031 as a medical device with GST rate 12%? ii. Whether the product Bicarbonate bag is correctly classified under HSN code 28363000 as a GST rate 18%? 5. Comments were received from both the CGST and SGST Department. The Assistant Commissioner, Division-Himmatnagar, CGST Gandhinagar Commissionerate has vide letter dtd. 13.02.2025 submitted that in view of the product 'Dry Citrate Powder' and 'Bicarbonate bag' being classified as a Class 'C' Medical Device by the Central Drugs Standard Control Organization (Medical Devices Division), Directorate General of Health Services, Government of India, the same would merit classification under HSN 90189031. Whereas, the Assistant Commissioner of State Tax, Unit-26, Himatnagar has vide letter dated 24.02.2025 submitted that 'Dry Citrate Powder' would not be classified under 90189031, as the clarification on Classification of Medical Devices issued by the Directorate General of Health Services nowhere defin....
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.... Chapter or of Chapter 84, 85 or 91 (other than heading 8487, 8548 or 9033) are in all cases to be classified in their respective headings; (b) other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind; (c) all other parts and accessories are to be classified in heading 9033. 9018 INSTRUMENTS AND APPLIANCES USED IN MEDICAL, SURGICAL, DENTAL OR VETERINARY SCIENCES, INCLUDING SCIENTIGRAPHIC APPARATUS, OTHER ELECTROMEDICAL APPARATUS AND SIGHT-TESTING INSTRUMENTS - Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters): 9018 90 19 ---- Other 9018 90 31 ---- Artificial kidney (dialysis) apparatus HSN explanatory notes- CHAPTER 90 90.18 - Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic....
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....eds), dentists' chairs not incorporating dental appliances of this heading, etc. (heading 94.02). 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 of the instruments used in medicine or surgery (human or veterinary) are, in effect, tools (e.g., hammers, mallets, saws, chisels, gouges, forceps, pliers, spatulae, etc.), or articles of cutlery (scissors, knives, shears, etc.). Such articles are classified in this heading only when they are clearly identifiable as being for medical or surgical use by reason of their special shape, the ease with which they are dismantled for sterilisation, their better quality manufacture, the nature of the constituent metals or by their get-up (frequently packed in cases or boxes containing a set of instruments for a particular treatment : childbirth, autopsies, gynaecology, eye or ear surgery, veterinary cases for parturition, etc.). The instruments and appliances classified here may be equipped with optical devices; they may a....
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.... Surgical instruments such as corneal trephines, keratomes. (2) Diagnostic instruments such as ophthalmoscopes; 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); eye specula. (3) Orthoptic or sight-testing apparatus including amblyoscopes, retinoscopes, skiascopes, strabometers, keratometers, keratoscopes, eye measurement meters designed to measure the distance between the pupils, trial-cases (of lenses) and trial-frames (for carrying the trial lenses), optometric scales, test charts. However, optometric scales and charts on paper, paperboard or plastics, used for colour perception tests, are excluded (Chapter 49). This heading also covers electrically heated compresses for the eyes, and electro-magnets designed for removing metallic particles from the eyes. (D) Ear instruments, c.g., auriscopes. However, tuning forks, whether or not for medical use, are excluded (heading 92.09). (E) Anaesthetic apparatus and instrume....
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....c pressure levels. They are used for the treatment of conditions such as decompression sickness, air embolism, gas gangrene, carbon monoxide poisoning, refractory osteomyelitis, skin grafts and flaps, actinomycosis and exceptional blood loss anaemia. (R) 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 lamps which are not clearly identifiable as being for medical or surgical use (heading 94.05). CHAPTER 29 THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975 CHAPTER 29 Organic chemicals 2918 CARBOXYLIC ACIDS WITH ADDITIONAL OXYGEN FUNCTION AND THEIR ANHYDRIDES, HALIDES, PEROXIDES AND PEROXYACIDS; THEIR HALOGENATED, SULPHONATED, NITRATED OR NITROSATED DERIVATIVES - Carboxylic acids with alcohol function, but without other oxygen function, their anhydrides, halides, peroxides, peroxyacids and their derivatives: 2918 15 -- Salts and esters of citric acid : 2918 15 10 --- Potassium citrate 2918 15 20 --- Sodium citrate 2918 15 30 --- Bismuth citrate 2918 15 40 --- Dis....
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.... • Sodium Acetate IP 1.50 g • Citric Acid IP 5.66 g • Dextrose IP 35.00 g It is further, stated by the applicant, that the intended use is for patients undergoing haemodialysis and that the product name is Dry Citrate Powder for Haemodialysis BP part A with dextrose. 11. As mentioned earlier, the applicant's case is that the product merits classification under HSN 90189031; that they have been classifying the product under the said HSN & discharging 12% GST. Let us firstly examine this claim of the applicant. 12. Chapter 90 of the Customs Tariff Act, 1975, covers optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof. While HSN 9018 inter alia covers instruments and appliances used in medical and surgical use, HSN 90189031, covers artificial kidney dialysis apparatus. On going through the explanatory notes of HSN 9018, it is further observed that • the heading covers a wide range of instruments & appliances which are used only in professional practice to make diagnosis to prevent or treat an illness or to operate; • i....
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....s either an instrument, appliance or an apparatus. Having held so, the question of Chapter Note 2, reproduced supra, being applicable, would not be of any aid to the applicant. 16. Now moving on to the rival HSN entry, we find that chapter 29 deal with organic chemicals, while HSN 2918, deals with carboxylic acids with additional oxygen function & their anhydrides, halides, peroxides and peroxy acids; their halogenated sulphonated nitrated or nitrosated derivatives. Dry citrate powder is a chemical compound & not a measuring, checking or medical instrument. Citrate is a salt of citric acid, a carboxylic acid. These acids are organic compounds. Now, HSN 291815 deals with salts and esters of citric acid and in terms of the HSN explanatory notes, the main alcohol acids include citric acid; that it is used for preparing beverages, in the textile industry, in oenology, in medicine, in making citrates, etc. 17. In view of the foregoing, we therefore, find that looking to the composition, the product is classifiable under 29181590. 18. Lastly, the averment of the applicant that the product is a medical device; that they manufacture the product in terms of the license provided by ....