18% GST Applicable on Cancer Diagnosing Drug [Read AAR]

The Authority of Advance Ruling (AAR Uttar Pradesh) in the matter of M/s IBA Molecular Imaging (India) P. Ltd. has ruled out that 18% GST is Applicable to the Cancer Diagnosing Drug.

The applicant is, registered under the provisions of the Central Goods and Services Tax Act, 2017 as well as Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and UPGST Act respectively). The applicant is engaged in the manufacture of pioneer drugs labelled as 18F­Fluorodeoxyglucose, 18F PSMA, 18 F DOPA and many more Radioactive compounds labelled with F18. F18 compounds are Radioactive isotopes, used as a diagnostic reagent, used primarily for the 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.

The Question and Ruling are as follows:

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 11 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?

RULING

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 11 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?

Ans: In negative.

ii) If not, what would be the HSN classification and rate of tax applicable on the product under consideration?

Ans: 2844 @ 18%. (9% CGST + 9% SGST)

For Official Ruling Download PDF Given Below: