kapil dk (7 Points)
13 November 2022We are Pharmaceutical re packers from Vijayawada.
We are been confused from last 2 years regarding GST for particular items like GLYCERIN, LIQUID PARAFFIN, OIL OF TURPENTINE.
Where as per common law for repacking we need to payb18% GST but as per drug law it comes under 12% GST.
Where some of the companies are paying 18% GST for same item and others are paying 12%, we request you to please clarify how much GST do we need to pay for pharmaceutical repacking items?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(162201 Points)
Replied 13 November 2022
If the material is supplied by your client, repacking will be only service part, which will fall under 18% GST.
sabyasachi mukherjee
(26511 Points)
Replied 14 November 2022
kapil dk
(7 Points)
Replied 14 November 2022
Sir, When we purchase from the client we are paying 18% but when we repack the material into smaller portion like 500ml bottle and selling to our vendors should we go for 18% as per repacking norms or 12% as per drug norms ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(162201 Points)
Replied 14 November 2022
Depend how you bill it.
For service charge it would be 18%
But for drugs, it depends upon the drugs rate.
kl Bhavana
(Student CA Final )
(417 Points)
Replied 14 November 2022
kapil dk
(7 Points)
Replied 14 November 2022
we are not reprocessing any item. just we are buying 200ltrs barrel of glycerin and packing it into 100ml or 500ml.
under repacking of goods norms we need to pay 18% GST, since it is considered as a drug it comes under 12% GST.
When we purchase 200ltrs barrel we are paying 18% GST on it. But when we repack into small sizes should we pay 12% or 18%? should we follow drug act or repacking act?
Durga Prasad Reddy
(student)
(22 Points)
Replied 18 November 2022
Repacking amounts to manufacturing activity. You need to bill for service charges-Amount payable for repacking by the customer @ 18% and for the quantity of drug repacked you need to pay the applicable rate of GST on the drug
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