Medical equipment HSN Code

Understanding HSN Codes for Medical Equipment

In the dynamic healthcare sector, understanding the Harmonized System of Nomenclature (HSN) codes for medical equipment is crucial for accurate Goods and Services Tax (GST) compliance in India. Medical equipment encompasses a vast range of products, and their HSN classification often depends on their specific function and category. Let’s delve into the relevant HSN codes and their associated GST rates based on the provided data.

Navigating Chapter 90 for Medical and Surgical Instruments

Chapter 90 of the HSN broadly covers “Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof.” This chapter is particularly relevant for a significant portion of medical equipment.

• Instruments and Appliances for Medical, Surgical, Dental, or Veterinary Sciences (HSN 9018): This is a key HSN code for a wide array of medical devices. The data highlights sub-categories like:
  • Renal Dialysis Equipment, Blood Transfusion Equipment (HSN 90189031, 90189032, 90189033): These life-saving devices are consistently taxed at a 12% GST rate, effective from July 1, 2017. This lower rate reflects their essential nature.
  • Other instruments and appliances used in these fields also generally fall under HSN 9018.
• Photographic and Cinematographic Laboratory Apparatus (HSN 9010): While not directly “medical equipment,” this category is included in Chapter 90. Apparatus for photographic laboratories, including those for developing and projection, fall under various HSN 9010 sub-codes (e.g., 90101000, 90104100, 90104200, 90104900, 90105000, 90106000, 90109000). These are subject to an 18% GST rate, effective from November 15, 2017.
• Microscopes (HSN 9012): Microscopes other than optical microscopes, including electron microscopes fitted with specialized equipment, are categorized under HSN 90121010, attracting an 18% GST.

Other Relevant Chapters for Medical Equipment Components and Services

While Chapter 90 is central, other HSN chapters may apply depending on the specific component or related service:

• Electrical Machinery and Equipment (Chapter 85): Certain electrical components or specialized electrical equipment used within medical devices might fall under Chapter 85. For instance, “Vhf Omni Range Equipment” (HSN 85269150) is taxed at 18% GST. While this specific example might not be a direct medical device, it demonstrates the classification of electrical components.
• Inorganic Chemicals (Chapter 28): “Medical Grade Oxygen” falls under HSN 28044010 and is subject to a 12% GST rate, effective from November 15, 2017. This highlights that specific medical consumables are classified based on their chemical nature.
• Installation Services (SAC 998735): The installation services of professional medical machinery and equipment fall under Service Accounting Code (SAC) 998735. This service generally attracts a 5% or 18% GST, with specific conditions and exemptions, such as those related to FIFA U-17 Women’s World Cup 2020 as mentioned in the data.

Crucial Considerations for Healthcare Businesses

• Specificity is Key: Always determine the precise function and composition of the medical equipment to apply the correct HSN code. Generic classifications can lead to compliance issues.
• Services vs. Goods: Differentiate between the HSN codes for medical goods and the Service Accounting Codes (SACs) for related services like installation or maintenance.
• Evolving Regulations: GST rates and HSN classifications can be amended by the GST Council. Stay informed through official government notifications and updates.

Accurate HSN code classification is fundamental for efficient tax management and compliance within the Indian medical equipment industry. By carefully identifying the correct codes, businesses can ensure smooth operations and avoid potential penalties.