Case Law Details
In re Biocon Limited (DTA) (GST AAR Karnataka)
The phrase “Micafungin Sodium for Injection” very clearly specifies the manner of administering Micafungin Sodium in the body. The applicant, during the personal hearing, with regard to possibility of administering Micafungin Sodium by any way other than injection, have not put anything on record but have stated that they take a certificate/ undertaking from their customers that they would use it only for injections.
In view of the foregoing the question before us to decide is whether the bulk drug ‘Micafungin Sodium’ being supplied by the applicant qualifies to be ‘Micafungin Sodium for injection’, so as to attract the concessional rate of GST i.e. 5% GST. It is an admitted fact that the product being supplied by the applicant can not be directly administered as injection. The concessional rate of GST is applicable only to the product Micafungin Sodium which is ready for administering by way of injection. In the instant case the applicant supplies bulk drug Micafungin Sodium to their customers and hence the said drug becomes raw material to the said customers. The applicant contends that their bulk drug is essential for ‘Micafungin Sodium for injection’ and hence their bulk drug gets covered under the entry for concessional rate of GST. The entry would have been ‘Micafungin Sodium’, had the intention of the Government been to extend the benefit of concessional rate to the bulk drugs/raw material. Therefore 5% GST is not applicable to the bulk drug Micafungin Sodium, in terms of Sl.No.114 of List I to Entry No. 180 of Schedule I to the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017.
In view of the foregoing, we pass the following The sale of Micafungin sodium by the DTA unit of the applicant is not covered under Serial No. 114 of Entry No. 180 of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and therefore, is not entitled for concessional rate of GST at the rate of 5%.
Read AAAR Order at following link- 5% GST on sale of Micafunign Sodium by DTA unit of BIOCON: AAAR
Please become a Premium member. If you are already a Premium member, login here to access the full content.
