IGST at 5% Applicable on Bulk Drug Imports as APIs Qualify as ‘Drugs’: CAAR Mumbai

In re Cipla Limited (CAAR Mumbai) The applicant filed applications before the Customs Authority for Advance Ruling (CAAR), Mumbai, seeking clarification on whether Integrated Goods and Services Tax (IGST) at 5% is applicable on the import of bulk drugs (Active Pharmaceutical Ingredients—APIs) under Sl. No. 226 of Schedule I of NOTIFICATION NO. 9/2025-INTEGRATED TAX (RATE) dated 17.09.2025. The applicant is a pharmaceutical company engaged in manufacturing and supplying pharmaceutical products. It imports bulk drugs, which are APIs used in the manufacture of formulations and, in certain cases...