2019 (4) TMI 1942 - AAR - GST

Classification of goods - rate of GST - Stadiometer being diagnostic medical equipments - Infantometer being diagnostic medical equipments - to be covered in 12% GST slab or otherwise? - HELD THAT - Infantometer as the name suggests is used for the purpose of measuring height/ length of infants. As per wiktionary definition Infantometer is an instrument for measuring the size of young children. The product is described as useful for research clinical and hospital purpose - Stadiometer is described as piece of medical equipment used for measuring human height. It is used in routine medical examination and for clinical tests and experiments. Chapter 90 of Section XVIII covers optical photographic cinematographic measuring checking precision medical or surgical instruments and apparatus; parts and accessories thereof - The Heading 9018 incorporates instruments and appliances used in medical surgical dental or veterinary sciences including scientigraphic apparatus other electromedical apparatus and sight-testing instruments. The sub-heading 9018 90 covers other instruments and appliances - Further Heading 9017 covers drawing marking-out or mathematical calculating instruments (for example drafting machines pantographs protractors drawing sets slide rules disc calculators); instruments for measuring length for use in the hand (for example measuring rods and tapes micrometers callipers) not specified or included elsewhere in this chapter. The tariff item 9017 80 10 mentions measuring rods and tapes and dividing scales with rate of tax being 18%. The above definitions make it clear that both these instruments the stadiometer and the Infantometer have clinical used and are described as medical equipments. Therefore these can be described as diagnostic instruments and apparatus. Both Stadiometer and Infantometer are medical instrument used exclusively for clinical and medical experimental purposes and are not scale rods or divided scales of general nature. Hence these are covered under tariff item 9018 90 19 (other category) with rate of tax being 12%.

Summary

Issues:
1. Classification of Stadiometer under GST slab.
2. Classification of Infantometer under GST slab.

Analysis:
1. The applicant, a manufacturer of medical equipment, sought clarification on whether Stadiometer, used to measure the height of adult patients, should be classified under the 12% GST slab.
2. Similarly, the applicant inquired about the classification of Infantometer, used to measure the height of infant patients, under the 12% GST slab.

Statement of the applicant:
1. The applicant highlighted that both Stadiometer and Infantometer are diagnostic medical equipment used in hospitals and rural healthcare centers.
2. They argued that these instruments fall under HSN code 9018, which covers instruments used in medical, surgical, dental, or veterinary sciences.
3. Drawing a parallel with blood pressure measuring instruments classified under 90189011 at a 12% tax rate, the applicant contended that Stadiometer and Infantometer should also be classified under 9018 due to their medical use in measuring patient height.

Discussion:
1. Chapter 90 of Section XVIII encompasses medical instruments and apparatus, including those used in surgical and veterinary sciences.
2. The Heading 9018 specifically includes instruments used in medical, surgical, dental, or veterinary sciences, indicating the relevance of Stadiometer and Infantometer.
3. While Heading 9017 covers instruments for measuring length, specific mention of measuring rods and tapes falls under a different tax rate of 18%.
4. The definitions of Infantometer and Stadiometer confirm their clinical and medical utility in measuring the size of infants and human height, respectively.
5. Both instruments are categorized as diagnostic instruments and apparatus, distinct from general measuring rods or divided scales.

Ruling:
1. The Authority determined that both Stadiometer and Infantometer are medical instruments exclusively used for clinical and medical experimental purposes.
2. Consequently, they are classified under tariff item 9018 90 19 with a tax rate of 12% (6% each under CGST and HGST Act).

The ruling clarifies the classification of Stadiometer and Infantometer as medical instruments under the appropriate GST slab, ensuring consistency in tax treatment for diagnostic equipment used in healthcare settings.