The product ‘Urine Collection Bags’ fall under Entry No.257 of Schedule-I of Notification No.01/2017-Central Tax(Rate) and the GST liability on it is 5%
Classification of goods— In the instant case, applicants are engaged in the manufacture and supply of many kinds of medical devices including Urine collection bags falling under HSN Code 90189099 which 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 28.06.2017 attracting GST at the rate of 5%.
we find that they have mentioned that the product ‘Urine collection bag’ manufactured and supplied by them, which are for the disabled would be correctly classifiable under Entry No.257 in Schedule-I of NotificationNo.01/2017-Central Tax (Rate) dated 28.06.2017as there is a specific entry of their product at Sr.No.8 of List 3 to Schedule-I instead of Entry No.218 of Schedule-II of the said Notification which is a general entry.
Held that— In this case, we find that the entry No.257 of Schedule-I of Notification No.01/2017-Central Tax(Rate) dated 28.06.2017 provides a more specific description of the product manufactured and supplied by the applicant as there is a specific entry of ‘Urine Collection Bag’ at Entry No.8 of List 3(E) appended to the said Schedule whereas the Entry No.218 in Schedule-II of aforementioned Notification provides only a general description i.e. instrument/appliance used in the medical sciences. Therefore, in light of the aforementioned discussions as well as in light of Rule 3(a) of the General Rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), we conclude 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%