5% GST on Supply and Manufacturing of Urine Collection Bags: AAR [Read Order]

5% GST on Supply and Manufacturing of Urine Collection Bags: AAR [Read Order]

GST - supply and manufacturing of Urine Collection Bags - AAR - Taxscan

The Gujarat Authority of Advance Ruling (AAR) ruled that 5% GST on supply and manufacturing of ‘Urine Collection Bags’.

The applicant, M/s. Narendrakumar Manilal Patel (National Health Care) is engaged in the manufacture and trading of Urine collection bags falling under HSN Code 90189099.

It was stated that the Urine collection bags are covered under Serial No. Entry (8) of List 3 of Entry 257 of Schedule-I of Notification No:01/2017-Central Tax (Rate) dated June 28, 2017 attracting GST at the rate of 5%.

The subject goods is for disabled in the nature of Urine collection bags falling under HSN Code 90189099; that corresponding Column (3) to Entry No.257 of Schedule-I of the aforementioned Notification reads as “Assistive devices, rehabilitation aids and other goods for disabled, specified in List 3 appended to this Schedule”.

On a plain reading of entry at Serial No.E(8) of List 3 of Entry 257 of Schedule-I and General Entry at Serial No.218 of Schedule-II of Notification No.01/2017-Central Tax (Rate), it is evident that Urine collection bags are specifically covered under the entry at Serial No.E(8) of List 3 of Entry 257 of Schedule I whereas the entry at Sr.No.218 of Schedule-II is a general entry that covers all instruments and appliances used in medical, surgical, dental or Veterinary sciences including scintigraphic apparatus, other electro medical and sight-testing instruments and the GST liability under the said heading is 12%.

The applicant has sought the advance ruling on the issue whether the goods supplied by the applicant are covered under Serial No. E(8) of List 3 of Entry 257 of Schedule I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 issued under the Central Goods and Services Tax Act, 2017 and corresponding Notifications issued under the Gujarat Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017 or Serial No.218 of Schedule-II of the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 attracting GST rate of 12%.

The coram consisting of Sanjay Saxena and Mohit Aggarwal ruled that the product ‘Urine Collection Bags’ manufactured and supplied by the applicant fall under Entry No.257 of Schedule-I of Notification No.01/2017-Central Tax(Rate) dated 28.06.2017 and the GST liability on it is 5% (2.5% CGST and 2.5% SGST).

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