In re International Homoeo Research Pvt Ltd (GST AAR West Bengal)
The applicant, a manufacturer of homoeopathic medicaments, sought an advance ruling under Section 97(1) of the GST Act regarding the applicable Goods and Services Tax (GST) rates and correct HSN classification for different categories of products manufactured in accordance with recognized homoeopathic pharmacopoeias. The Authority clarified that references to the GST Act include both the CGST Act and the WBGST Act, which have parallel provisions.
The applicant manufactures medicaments consisting of single ingredients strictly in accordance with the formulae described in authoritative books such as the Homeopathic Pharmacopoeia of India, the United States, the United Kingdom, the German Homeopathic Pharmacopoeia, and books listed in the First Schedule to the Drugs and Cosmetics Act, 1940. The applicant outlined the manufacturing process, including research and monograph selection, preparation of drug substances through mother tinctures or triturations, and potentization involving dilutions and succussions based on various potency scales.
The application raised five questions. First, whether GST at 5% prescribed under Serial No. 181A of Schedule I of Notification No. 1/2017-CT (Rate), relating to HSN 30, applies to single-ingredient homoeopathic medicines with different potencies where no mixing of ingredients occurs. Second, whether GST at 12% prescribed under Serial No. 63 of Schedule II for HSN 3004, relating to “Homoeopathic Siddha,” applies to homoeopathic medicines consisting of combinations of two or more ingredients. Third, the applicant sought clarification on the correct HSN code to be used in returns because HSN 3004 is required at the time of uploading, whereas the schedules refer to both “30” and “3004.” Fourth, whether medicaments falling under HSN 30049014 and manufactured strictly in accordance with classical pharmacopoeias attract 5% GST. Fifth, whether medicaments under the same HSN but consisting of two or more mixed constituents for therapeutic or prophylactic use attract 12% GST.
The applicant stated that homoeopathic medicines include potentised preparations, mother tinctures, and triturated tablets, all made strictly according to authoritative pharmacopoeias, and that GST guidelines specify a 5% rate for single-ingredient medicines. The applicant explained that all single-ingredient products—such as mother tinctures, biochemic tablets, and triturations not marketed under any proprietary brand—are billed at 5%, consistent with GST norms applicable to generic, unbranded products. Conversely, for combination medicines comprising two or more ingredients and marketed under brand names, the applicant charges 12% GST, asserting that these formulations are not listed in pharmacopoeias, are considered proprietary in nature, and that the 12% rate is widely followed in the industry.
The applicant also clarified that potentised homoeopathic medicines, though available in numerous potencies, remain single-ingredient medicines and should be taxed at 5%. To simplify billing, these potencies are grouped into categories such as lower potencies, 200 potency, and higher potencies. The applicant reiterated that the correct interpretation of GST law is that single-ingredient medicines attract 5% GST, while combination medicines attract 12%.
The application was admitted, as the questions fell under Section 97(2)(a) of the GST Act. The applicant confirmed that the issues raised were not pending or decided under any provision of GST law. No comments were provided by the jurisdictional revenue officer.
A personal hearing was scheduled on 14.10.2025 and later adjourned to 17.10.2025. At the hearing, the applicant’s representative informed the Authority that due to changes in GST rates effective from 22.09.2025, the applicant intended to withdraw the application. A written submission dated 31.10.2025 was also uploaded, confirming the desire to withdraw the application for the reasons stated during the hearing.
Given these circumstances, the Authority concluded that the applicant no longer wished to pursue the matter and accordingly disposed of the application as withdrawn.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, WEST BENGAL
