Bengaluru-based Sivantos India Pvt. Limited is engaged in the business of trading of hearing aids and their parts and accessories to the domestic market, which are manufactured by their parent company abroad, imported by the applicant, and are said to be suitable for use solely with the hearing aids. It moved to KAAR with three questions. 

First, what would be the classification of parts and accessories suitable for use solely with the hearing aids. Second, what would be the rate of tax on supply of such parts and accessories, and third, whether such parts and accessories are exempted by virtue of exemption for the hearing aids.

As on date, the applicant is charging GST at the rate of 18 per cent on parts and accessories. However, it contended that the said parts and accessories are designed by their parent company to make them suitable for use solely with the hearing aids with no other alternate uses; hence, these are suitable for use solely with the hearing aids and accordingly, they are exempted “classifiable under heading 90219010 and are exempted from GST in terms of SI.No. 142 of Notification 2/2017-Central Tax (Rate) dated June 28, 2017.”

Parts and accessories not exempted

After going through all the facts and arguments, KAAR said it is clearly evident from the entry no. 142 that the said entry covers only goods described as “hearing aids” and not the “parts & accessories of the hearing aids”. Thus “the entry is not applicable to the instant case,” it said while adding that the rate of tax applicable on supply of such parts and accessories of hearing aids is 18%.

Source: The Hindu Business Line 
https://www.thehindubusinessline.com/economy/hearing-aid-exempted-from-gst-not-parts-and-accessories-karnataka-aar/article65805750.ece