Veterinary Instruments "AI Crate/Travis" Classified Under TI 7306, GST Applicable At 18%: GAAR
In a significant development, the Gujarat Authority Of Advance Ruling (GAAR) Bench has provided clarity on the classification and tax rate applicable to the veterinary instrument known as "AI Crate" or "Artificial Insemination Crate/Travis." The ruling comes in response to an application filed by Kantaben Rameshbhai Chaudhari, Krishna Enterprises, engaged in the manufacture of...
In a significant development, the Gujarat Authority Of Advance Ruling (GAAR) Bench has provided clarity on the classification and tax rate applicable to the veterinary instrument known as "AI Crate" or "Artificial Insemination Crate/Travis."
The ruling comes in response to an application filed by Kantaben Rameshbhai Chaudhari, Krishna Enterprises, engaged in the manufacture of these instruments.
The applicant, Kantaben Rameshbhai Chaudhari engaged in the manufacture of veterinary instruments used for the medical treatment of animals, sought an advance ruling on two critical questions:
- 1. Rate of Tax Applicable: The applicant sought clarification on the applicable rate of tax for veterinary instruments, specifically the AI Crate/Travis.
- 2. Classification of the Product: The bench was tasked with determining the correct classification of the AI Crate/Travis to ascertain its tax liability.
After careful examination of the submissions and relevant tariff entries, the bench deliberated on the matter.
Classification:
The applicant contended that their product should be classified under TI 9018, which pertains to "Instruments and appliances used in medical, surgical, dental, or veterinary sciences, including scintigraphic apparatus, other electromedical apparatus, and sight testing instruments."
However, upon reviewing the product diagram and photograph presented during the personal hearing, the bench concluded that the AI Crate/Travis was essentially a structure made of tubes and iron and steel pipes. As such, the bench determined that the appropriate classification for the product is TI 7306.
Rate of Tax:
Regarding the applicable tax rate, the bench referred to Notification No. I/2017-Central Tax (Rate), Schedule III, Sr. No. 220, which stipulates the rate of GST as 18%. Therefore, the bench ruled that the AI Crate/Travis would be subject to GST at the rate of 18%, divided equally between the Central and State GST (9% CGST and 9% SGST).
In conclusion, the Advance Ruling Bench clarified that the veterinary instrument, AI Crate/Travis, manufactured by Kantaben Rameshbhai Chaudhari, Krishna Enterprises, falls under the classification of TI 7306 of the Customs Tariff. Accordingly, the product is liable to GST at a rate of 18% (9% CGST and 9% SGST).
Name of Applicant: Kantaben Rameshbhai Chaudhari, Krishna Entperises (Trade name)
Order Date: 30/06/2023