9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1870 - AAR - GSTClassification of goods - rate of GST - Telemedicine as individual service - Pulse Oximeter (device to measure O2 in blood) - weighing scale to measure human weight - blood pressure measurement machine - Glucometer to measure blood glucose - test strips to measure blood glucose - android based tablet device for data storage - Finger print sensor machine - bundled sale of Medical Kit (a box) containing medical equipments - medical Kit and Telemedicine - Telemedicine - Admissibility of ITC on combined sale of Medical. Telemedicine as individual service - HELD THAT - Telemedicine as individual service is classifiable under chapter heading 9993 as Human health and social care services (S.No.31) and the same is chargeable to CGST SGST @9% each, under Notification No. 11/2017-Central Tax (Rate) dt.28.06.2017 and Notification No-46/5T-2, dated 30.06.2017. Pulse Oximeter (device to measure O2 in blood) - HELD THAT - This device is classifiable under chapter beading 9018, as instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other electromedical apparatus and sight testing instruments. They are chargeable to CGST SGST @ 6% each, under serial number 218 of Schedule it of Notification No. 01/2017-Central Tax (Rate) dt.28.06.2018, and Notification No. 35/ST-2, Dated 30.06.2017. Weighing scale to measure human weight - HELD THAT - This device is classifiable under chapter heading 8423 as weighing machinery (excluding balances of a sensitivity of 5 centigrams or better), including weight operated counting or checking machines; weighing machine weights of all kinds . They are chargeable to-CGST SGST @ 9% each, under serial number 324 of schedule III of Notification No.01/2017-Central Tax (Rate) dt.23.06.2018, and Notification No. 35/ST-2, Dated 30.06.2017. Blood pressure measurement machine - HELD THAT - This device is classifiable under chapter heading 9018 as instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other elecromedical apparatus and sight testing instruments. They are chargeable to CGST SGST @ 6% each, under serial number 218 of schedule II of Notification No.01/2017-Central Tax (Rate) dt.28.06.2018, and Notification No. 35/ST-2, Dated 30.06.2017. Glucometer to measure blood glucose - HELD THAT - This device is classifiable under chapter heading 9018 as instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other elecromedical apparatus and sight testing instruments. They are chargeable to CGST SGST @ 6% each, under serial number 218 of schedule 11 Notification No.01/2017-Central Tax (Rate) dt.28.06.2018, and Notification No. 35/ST-2, Dated 30 06.2017. Test strips to measure blood glucose - HELD THAT - This device is classifiable under chapter heading 9018 as instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other elecromedical apparatus and sight testing instruments. They are chargeable to CGST SGST @ 6% each, under serial number 218 schedule II of Notification No.01/2017-Central Tax (Rate) dt.28.06.2018, and Notification No. 35/5T-2, Dated 30.06.2017. Android based tablet device for data storage - HELD THAT - This device is classifiable under chapter heading 8471 as automatic data processing machines and units thereat magnetic or Optical readers, machines for transcribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included . They are chargeable to CGST SGST @ each, under serial number 360 of schedule III of Notification No.01/2017-Central Tax (Rate) dt.28.06.2018, and Notification No. 35/5T-2, Dated 30.06.2017. Finger print sensor machine - HELD THAT - This device is classifiable under chapter heading 8471 as automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data on to data. Media in coded form and machines for processing such data, not elsewhere specified or included . They are chargeable to CGST SGST @ 9% each, under serial number 360 of Schedule III of Notification No.01/2017-Central Tax (Rate) dt.28.06.2018, and Notification No 35/ST-2, Dated 30.06.2017. Bundled sale of Medical Kit (a box) containing medical equipments - HELD THAT - The said medical kit comprises of goods which attract GST @ 12%, as well GST @18%. Therefore, the said medical kit shall be chargeable to GST @18% Medical Kit and Telemedicine - HELD THAT - It cannot be said that telemedicine and the aforesaid medical kit are having conjunction with each other in the ordinary course of business. Therefore, supply of these two together does not constitute composite supply . Rather the same are more aptly are covered by the definition of mixed supply , as discussed in the preceding paras, being independent from each other, apparently constitutes mixed supply . Therefore, in terms of Section 8 (b) of the CGST/HGST Act, 2017, which provides that a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax, the said supply of telemedicine and aforesaid medical kit will attract GST @18%. Telemedicine - HELD THAT - When GST is held payable on telemedicine services, the benefit of input tax credit is admissible on telemedicine medicines in terms of Section 16(1) of the CGST/HGST Act, 2017, which provides that every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. Admissibility of ITC on combined sale of Medical - HELD THAT - The input tax credit on combined sale of medical kit as well as telemedicine, shall be admissible.
Issues:
1. Rate of GST on bundled sale of Medical Kit 2. Rate of GST on Telemedicine as individual service 3. Rate of GST on bundled sale of Medical Kit and Telemedicine 4. Rate of GST on specific medical equipment Analysis: 1. The Authority for Advance Ruling addressed the classification and GST rates for various goods and services supplied by the applicant. The GST rates were determined as follows: - Telemedicine is classified under Human health and social care services and attracts CGST & SGST at 9% each. - Specific medical equipment like Pulse Oximeter, weighing scale, blood pressure machine, Glucometer, test strips, tablet device, and finger print sensor machine have individual classifications and GST rates ranging from 6% to 9%. - The bundled sale of the Medical Kit was analyzed as a mixed supply, attracting GST at 18% due to the highest applicable rate among the items included. 2. Regarding the bundled sale of Medical Kit and Telemedicine, the Authority found that they did not constitute a composite supply but rather a mixed supply. As per Section 8(b) of the CGST/HGST Act, a mixed supply is treated as the supply attracting the highest tax rate, resulting in a GST rate of 18% for the combined sale. 3. Input Tax Credit (ITC) was deemed admissible on Telemedicine services under Section 16(1) of the CGST/HGST Act, subject to prescribed conditions. Similarly, ITC on the combined sale of Medical Kit and Telemedicine was also considered eligible under the same provisions. 4. The final ruling provided specific GST rates for each item, including Telemedicine, medical equipment, and the bundled sale of the Medical Kit. The decision emphasized the classification, individual rates, and the treatment of combined supplies under the GST framework. In conclusion, the Advance Ruling Authority clarified the GST rates for various goods and services supplied by the applicant, addressing the classification, individual rates, and the treatment of bundled sales and Telemedicine under the GST regime.
|
