Classification of goods— The present appeal has been filed by the appellant against the Advance Ruling.

The appellant is engaged in the import and supply of laboratory reagents to the Government Research Institutions. 

Till the end of June, 2019, IGST was being levied by Customs Appraising Department on laboratory reagents @12% in terms of S.No.80 of Schedule II to the CGST Notification 01/2017-CT dated 28.06.2017. However later Customs observed that laboratory reagents of Customs tariff heading 3822 cannot be so taxed and IGST would be charged under the residuary S.No.453 viz. ‘Goods which are not specified in Schedule I, II, IV, V or VI’, of Schedule III of the Notification.

For deciding the classification of above produt, the AAR ruled that “The Laboratory Reagents are the goods which are not specified in Schedule I, II, IV, V or VI of the Notification 01/2017-Central Tax (Rate) and Integrated Tax (Rate) dated 28.06.2017 and as such it is recovered under Serial No.453 453 of Schedule III of Notification 01/2017-Central Tax (Rate) and Integrated Tax (Rate) dated 28.06.2017.”

The issue was placed before the GST Council and on its recommendations, it is clarified that the intention of this entry was to prescribe GST rate of 12% to all goods, whether diagnostic or laboratory regents, falling under heading 3822.

Held that— In view of the Circular No. 163/19/2021-GST dated 6th October 2021, issued under F.No. 190354/ 206/2021-TRU, we hold that concessional GST rate of 12% is applicable on all goods falling under heading 3822, vide Entry at S.No. 80 of Schedule II of notification No. 1/2017-Integrated Tax (Rate) dated 28.6.2017, including to Laboratory Reagents being imported and supplied by the Appellant.