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TMI Blog2023 (12) TMI 1272X X X X Extracts X X X X X X X X Extracts X X X X ..... y medical practitioners to make accurate diagnoses, and can be used in vivo or in vitro in order to detect certain diseases. The Section Note 1(A) specially stipulates that Goods answering to a description in heading 2844 are to be classified in the said heading only. F18 is a radioisotope and Fluorodeoxyglucose (18F-FDG) is a compound. The products being radioactive and compound of the radioisotope 18F, the same merits classification under heading 2844 only although it satisfies the condition mentioned in Chapter 30 i.e diagnostic reagent designed to be administered to the patient. The applicant has also submitted that medicaments are covered under Tariff heading 30 and that the same product has been classified under heading 3006 by some supplies. However, it may be appreciated that the classification of goods are to be guided by the provisions of law and Radioactive chemicals elements and radioactive isotopes are classifiable under ChSh 2844 only and nowhere else. The HSN classification and rate of tax applicable on the product under consideration is 2844 @ 18%. - SHRI AMIT KUMAR AND SHRI HARILAL PRAJAPATI, MEMBER Represented by : Susamoy Mishra, Ravi Goyal and Shu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant. 5. Statement of relevant facts having a bearing on the question(s) raised. The applicant is, registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Uttar Pradesh Goods and Services Tax Act, 2017 (herein after referred to as the CGST Act and UPGST Act respectively). The applicant is engaged in the manufacture of pioneer drugs labelled as 18F- Fluorodeoxyglucose, 18F PSMA, 18 F DOPA and many more Radioactive compounds labelled with F 18. F18 compound are Radioactive isotopes, used as diagnostic reagent, used primarily for diagnosis of cancer. It is also used in cardiology and neurology. As per the applicant, the above mentioned product is classifiable under chapter heading 3006 of the HSN, leviable to GST @ 12% (CGST and SGST both @ 6% each), in terms of entry No 65 of Schedule II of the Notification No 01/2017-CT (Rate), dated 28.06.2017 read with corresponding rate notification issued under UPGST Act, 2017. 6. The applicant has submitted their interpretation of law as under- T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms authorities. Hence the same needs to be adopted for GST also. Based on above, the applicant has submitted that all their F-18 products are classifiable under tariff item 30063000 as diagnostic reagents designed to be administered to the patient and attracts GST @ 12% under entry no 65 of Schedule II to notification no 01/2017-CT(R). 7. The application for advance ruling was forwarded to the Central Jurisdictional GST Officer vide letter dated 19.06.2023 to offer their comments/views/verification report on the matter. Deputy Commissioner, SGST- Sector 10, Noida has submitted his comments vide his letter dated 24.06.2023 wherein it has been submitted that since the HSN code 28444000 specifies the products, 'Radioactive Chemical elements and Radioactive Isotopes (including the Fissile or Fertile Chemical Elements and Isotopes) and their compounds; Mixtures and Residues containing these products radioactive elements and isotopes and HSN Code 30063000 specifies the products 'Pharmaceutical Goods specified in Note 4 to this chapter Opacifying Preparations for X-Ray Examinations; Diagnostic Reagents designed to be administered to the patient. The applicant's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present application has sought advance ruling on following question/clarification- i) Whether the F-18 Products would be classified under HSN 30063000, leviable to GST at the rate of 12%, in terms of entry no 65 of Schedule II of the Notification No 01/2017, Central Tax (Rate) issued under Central Goods and services Tax Act, 2017 (CGST Act, 2017) read with corresponding rate notification issued under the provisions of Uttar Pradesh Goods and Services Tax Act (UPGST) Act, 2017, or not? ii) If not, what would be the HSN classification and rate of tax applicable on the product under consideration. 13. From the submissions made by the applicant, we observe that the applicant is engaged in the manufacture of various F-18 Compounds which are Radioactive isotopes used as diagnostic reagent, used primarily for diagnosis of cancer. It is also used in cardiology and neurology. Diagnostic Reagents are chemicals used in laboratories to determine specific types of pathogens, metabolic abnormalities, physiological anomalies and genetic disease. They can be used in vivo or in vitro in order to detect certain disease. It is seen that these chemicals may either be used externally or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o paragraph (A) above, goods answering to a description in heading 28.43, 28.46 or 28.52 are to be classified in those headings and in no other heading of this Section. 2. Subject to Note 1 above , goods classifiable in heading 30.04, 30.05, 30.06, 32.12, 33.03, 33.04.33.05, 33.06, 33.07,35.06. 37.07 or 38.08 by reason of being put up in measured doses or for retail sale are to be classified in those headings and in no other heading of the Nomenclature. 15.1 Hence in view of the provisions contained in paragraph 1(A) of this Note, all radioactive chemical elements and radioactive isotopes, and compounds of such elements and isotopes (whether inorganic or organic, and whether or not chemically defined), are classified under heading 28.44, even though they could also fall under some other heading of the Nomenclature. Paragraph 1(B) of the Note provides that goods described in heading 28.43, 28.46 or 28.52 are to be classified under whichever of those headings of those headings is appropriate and under no other heading in Section VI, provided they are not radioactive or in the form of isotopes (in which case they are classified in either heading 28.44 or heading ..... X X X X Extracts X X X X X X X X Extracts X X X X
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