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2020 (5) TMI 222 - AAR - GSTRate of GST - sale of Micafungin sodium by the DTA unit of the applicant - Serial No.114 of Entry No.180 of the Notification No.1/ 2017-Central Tax (Rate) dated 28.06.2017 - taxable at the rate of 5% or not? - HELD THAT:- 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. 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 SI.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.
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