MEDICINE ITC AVAILABLE OR NOT

Input Tax Credit (ITC) on medicines is generally available to traders and manufacturers for business-related purchases used in taxable supplies. However, Section 17(5) restricts ITC if the medicines are consumed while providing GST-exempt health services, unless those supplies are mandated by law (e.g., under the Factories Act). If you are a retailer selling medicines, you are eligible for ITC as you pay tax on the outward sale.