5% GST Rate Applies to Joint Replacement Implants Rules Kerala AAR
The Kerala Authority for Advance Ruling decided that joint replacement implants under HSN 90213100 attract 5% GST instead of 12%.
- Ruling
- ORDER No. CT/4683/2018-C3 DATED 29/05/2018
- Dated
- 29 May 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Veena Chemicals asked whether joint replacement implants attract 5% or 12% GST.
- The authority ruled that these implants qualify for the lower 5% GST rate.
- Specific entry for joint replacement implants prevails over general artificial body parts.
In short
A medical retail dealer selling joint replacement implants under HSN code 90213100 was unsure about the correct Goods and Services Tax (GST) rate. The business was caught between a general entry charging 12% GST on artificial body parts and a specific entry charging 5% GST on joint replacement devices.
What has changed
How it worked before
Before order CT/4683/2018-C3, medical equipment traders were uncertain whether to bill joint replacement implants under the general 12% GST category or the lower 5% GST category.
What has changed
The Kerala Authority for Advance Ruling (AAR) clarified that joint replacement implants fall under Serial No. E(9) of List 3 of Entry 257 of Schedule I, which attracts 5% GST. Under tax interpretation rules, a specific product description overrides a general entry.
Who this affects
Traders, distributors, and medical supply stores selling artificial joints or joint replacement implants under HSN code 90213100.
An example
Apex Ortho Private Limited sells imported knee replacement implants under HSN code 90213100. They previously charged 12% GST under the broad category for artificial body parts. This ruling indicates that their products specifically fit the 5% GST category, so they can apply for an advance ruling to confirm the same lower rate for their business.
What you should do
If you trade in joint replacement implants, review your GST classification and pricing structure. Remember that an advance ruling binds only the applicant and their specific tax officer. You should consult a tax professional or apply for your own ruling before changing your tax rate.
If you do nothing
If you reduce your GST rate from 12% to 5% without a ruling or proper evaluation, your local tax officer might challenge the tax drop. If the tax authority determines you charged less than required, you will be liable to pay the unpaid tax difference along with interest and penalties.
The terms explained
- HSN Code
- An international system of numbers used in GST to classify different products for tax purposes.
- Advance Ruling
- A formal clarification given by GST authorities to a specific taxpayer regarding tax rates or rules applicable to their business.
- Schedule I
- A list under the GST rate notification that covers goods attracting a lower 5% tax rate.
The ruling in detail
Authority for Advance Ruling
Shri. Gopal Gireesh, Veena Chemicals
ORDER No. CT/4683/2018-C3 DATED 29/05/2018 · Keralam
Questions before the authority
- Whether implants for joint replacements falling under HSN Code 90213100 are covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 01/2017-Central Tax (Rate) attracting GST at 5%, or under Serial No. 221 of Schedule II attracting GST at 12%.
Facts
The applicant is a retail dealer engaged in the distribution and trading of implants for joint replacements purchased from M/s Johnson & Johnson Pvt Ltd. The products fall under HSN Code 90213100 (Artificial Joints). The applicant sought an advance ruling to clarify whether these items attract 5% GST under the specific entry for assistive devices or 12% GST under the general entry for artificial body parts.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification and GST rate for implants for joint replacements under HSN Code 90213100 | Covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 01/2017-Central Tax (Rate) attracting GST at 5% |
The Authority held that implants for joint replacements falling under HSN Code 90213100 are covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 01/2017-Central Tax (Rate). Consequently, the applicable GST rate on these products is **5%**.
Reasoning
The entry at Serial No. E(9) of List 3 of Entry 257 of Schedule I specifically covers instruments and implants for joint replacement, whereas Serial No. 221 of Schedule II is a general entry covering artificial parts of the body. Applying **Rule 3(a) of the General Rules for Interpretation** of the First Schedule to the Customs Tariff Act, 1975, the heading providing the **most specific description** must be preferred over a general description. Therefore, implants for joint replacements specifically qualify under Schedule I attracting 5% GST.
Provisions relied on
- Section 97 of the Goods and Services Tax Act, 2017
- Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 (Schedule I, Entry 257, List 3, E(9); Schedule II, Entry 221)
- Rule 3 of General Rules for Interpretation of First Schedule to the Customs Tariff Act, 1975
- Notification No. 50/2017-Customs dated 30.06.2017
For the practitioner
This ruling confirms that joint replacement implants under HSN 90213100 benefit from the concessional 5% GST rate under the specific entry for assistive/rehabilitation devices. Practitioners can rely on this order to apply the **principle of specific over general interpretation** when classifying orthopaedic implants against broader medical device entries.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/kerala-ct_4683-18-c3-gg_vc.pdf
Legibility of the scan, as read: high.
Prepared 18-10-2026.
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