The Tamil Nadu Authority of Advance Ruling ( AAR ) has held that the Cramp Comfort Patch used by women during period pain attracts 12% GST.
The applicant M/s. Lagom Labs Private Limited is engaged in the supply of various women’s wellness products such as sanitary pads, value kits which include various products, a multipurpose pouch to fit daily essentials, liners, and ‘Cramp Comfort’ which are heat patches for period pain, under the brand name ‘Nua’.
The Cramp Comfort patch is air-activated and emits heat upon contact with the atmosphere. It relaxes muscles and ensures smooth passage of blood flow during the monthly cycle. The applicant applied before the advance ruling authority to find out the appropriate classification of Cramp Comfort for the application of GST.
The Authority observed that it is not established that the product has been classified as a device specified by the Central Government in any notification and therefore reliance on Section 3(b)(iv), to claim that the product is a Medicament does not help them. It is further seen that the applicant claims the product to be a drug as per Section 3(b)(i), considering the material part of the said section to be ‘substances intended to be used for or in the treatment’. It is their claim that the predominant use of the product is to alleviate the pain in the abdomen caused due to Dysmenorrhea and therefore to be considered a ‘drug’.
The Coram of Sri. T.G.Venkatesh, I.R.S., Additional Commissioner/Member, and Smt. K.Latha., M.Sc., (Agri), Joint Commissioner (ST)/ Member by applying the ratio in the judgment issued in the case of Pfizer Consumer Healthcare Vs The Commissioners For HerMajesty S Revenue and Customs, has held that “the product though not notified as a ‘medical device’s required under” Section 3(b)(iv) of Drugs and Cosmetics Act 1940, is still marketed as ‘Self-heating Pain relief Patch’ and can be worn anywhere for alleviating the pain. Therefore, the product merits classification under CTH 3005 as the Customs Tariff is aligned with the HSN. Further, on perusal of the invoices furnished by the applicant, the applicant’s product is currently classified under HSN 3005 which is evident from the invoice raised in November’2021. Hence the product Comfort patch is chargeable to GST at the rate of 12%”.
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