2022 (4) TMI 1138 - AAR - GST

Classification of goods - rate of GST - HSN Code - PSA Medical Oxygen generation plant - tax benefit for the hospital for installing PSA Medical Oxygen plant - HELD THAT - It is evident that the air Separators are classifiable under CTH 8421. In the case at hand, the product, PSA Oxygen Generation Plant manufactured and supplied by the applicant is an Air Separator as has been brought out in para 8.1 above, therefore, the Product is classifiable under CTH 8421. In view of the above, it is held that the product PSA Medical Oxygen Generation Plant is classifiable under CTH 8421 39 and more specifically under CTH 8421 39 90. Applicable rate of tax - HELD THAT - The PSA Oxygen generator is liable to CGST @ 9% under the above SI.No. of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 and SGST at 9% under SI.No. 322 of Schedule-III of Notification G.O (Ms) No.62 (No. II(2)/CTR/532(d-4)/2017, TNGST (rate) dated 29-6-2017. Tax benefit for the hospital for installing PSA Medical Oxygen plant - HELD THAT - As the matter raised in the question falls outside Section 97(2), this question is not admitted and therefore rejected.

Summary

Issues Involved:
1. Tax percentage of PSA Medical Oxygen generation plant.
2. HSN Code of PSA Medical Oxygen generation plant.
3. Tax benefit for hospitals installing PSA Medical Oxygen plant.

Issue-wise Detailed Analysis:

1. Tax Percentage of PSA Medical Oxygen Generation Plant:
The applicant sought clarification on the applicable GST rate for PSA Medical Oxygen generation plants, as they encountered confusion due to varying rates (5%, 6%, and 18%) mentioned in GST notifications. The ruling clarified that the PSA Medical Oxygen generation plant is classified under CTH 8421 39 90. As per SI.No. 322 of Schedule-III of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017, the applicable CGST is 9%, and the SGST is 9%, resulting in a total GST rate of 18%.

2. HSN Code of PSA Medical Oxygen Generation Plant:
The applicant needed the HSN code to generate invoices correctly. The ruling determined that the PSA Medical Oxygen generation plant falls under HSN code 8421 39 90. This classification was based on the nature of the product as an air separator and not as a therapeutic device. The detailed examination of the Customs Tariff and Explanatory Notes supported this classification.

3. Tax Benefit for Hospitals Installing PSA Medical Oxygen Plant:
The applicant inquired about potential tax benefits for hospitals installing the PSA Medical Oxygen generation plant. The ruling stated that this question is outside the purview of the Advance Ruling Authority as per Section 97(2) of the CGST/TNGST Act 2017. The authority is limited to providing decisions on matters related to the supply of goods or services by the applicant. Consequently, this question was not admitted and was rejected.

Conclusion:
The ruling provided clear answers to the first two questions, confirming that the PSA Medical Oxygen generation plant is classified under HSN code 8421 39 90 with an applicable GST rate of 18%. The third question regarding tax benefits for hospitals was not within the authority's scope and was therefore rejected.