Concessional rate of 5% GST is applicable only to the medicine or drugs, which are ready for administering in the human being or person, rather than for the drugs which becomes raw materials to the customers.

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Last updated: 20 January 2021
Quick Summary
The Gujarat Authority for Advance Ruling has clarified that the concessional GST rate of 5% applies only to medicines and drugs that are ready for direct administration to humans. This ruling distinguishes between finished pharmaceutical products and the raw materials used in their manufacture. Therefore, drugs supplied as raw materials, rather than as ready-to-use medicines, do not qualify for the reduced tax rate.

Court :
Gujrat AAR

Brief :
M/s. Sterling Biotech Ltd., Jambusar State Highway, Vill : Masar, Ta Padra, Vadodara having a GSTIN : 24AABCS1946H3ZG, is a company filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the GGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the GGST Act.

Citation :
ADVANCE RULING NO. GUJ/GAAR/R/54/2020

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1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)

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