The Bangalore Bench of Appellate Authority for Advance Ruling (AAAR) has held that no Goods and Service Tax (GST) exemption would be available to the supply of parts and accessories of hearing aid.
The appellant, Sivantos India Pvt Ltd was engaged in the business of trading of hearing aids and their parts and accessories. Appellant had been charging GST at 18% since the order of Authority for Advance Ruling. Appellant had sought advance ruling regarding classification of the parts and accessories solely with the hearing aids and to determine the tax rate and as to whether the parts and accessories of hearing aid were exempted from Goods and Service Tax (GST).
Santhosh S Kutnikar on behalf of the appellant submitted that the entry No 221 of schedule ii of rate of notification had excluded the hearing aids. He contended that the such exception would also include the parts and accessories of the hearing aid. He also contended that even if exemptions were not available, the rate of tax would be 12%instead of 18% which was decided by the Authority for Advance Ruling (AAR).
The Bangalore Bench of Appellate Authority for Advance Ruling of Ranjana Jha and Shikha C held that under the subheading 902140 of the heading 9021 of the Custom Tariff Act the hearing aids excluding the parts and accessories were exempted from GST and the bench dismissed the appeal on all grounds. The bench also observed that the hearing aids parts and accessories would not be taxable at 12% as it was not covered under the entry No 221 of schedule ii of the rate of notification.
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