TMI BlogGST — FAQ on Drugs & Pharmaceuticals dated 31-07-2017X X X X Extracts X X X X X X X X Extracts X X X X ..... s under Section 17(5)(h) of the CGST Act, 2017. No tax is payable on clearance of physician samples distributed free of cost as the value of supply is zero and no credit has been availed. Question 3 : What is the procedure for movement of time expired medicines from the retail outlets to the manufacturer for destruction? Answer : In such cases, the manufacturer may issue a credit note within the time specified in sub-section (2) of Section 34 of the CGST Act, 2017 subject to the condition that the person returning the expired medicines reduces his ITC. Subsequently, when the time expired goods are destroyed, the manufacturer has to reverse his ITC on account of goods being destroyed. Where the goods are returned after the time l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 read with Section 25 of the CGST Act, 2017]. Hence, separate registration is required to be obtained for the unit located in SEZ. Question 7 : Whether ISD registration is required to be obtained separately? Answer : In terms of second proviso to Rule 8 of the CGST Rules, 2017 read with Section 25 of the GST Act, 2017, every person being an Input Service Distributor has to make a separate application for registration. Question 8 : What is the transitional credit that can be availed on the existing stocks held by a registered person under GST, who was not required to be registered under the existing law? Answer : In terms of Rule 117(4) of the CGST Rules, 2017 (transitional provisions) read with Section 140(3) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om tax free zones? Answer : The deemed credit in terms of Rule 117(4) of the CGST Rules, 2017 (transitional provisions) read with Section 140(3) of the CGST Act, 2017 would be available in respect of the goods, which were not unconditionally exempt from the whole of the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 or were not nil rated in the said Schedule. As the goods purchased from tax free zones were exempted from duty payment under a Notification issued under Section 5 of the Central Excise Act, 1944 and not Nil rated in the First Schedule to the Central Excise Tariff Act, 1985, the deemed credit would be available in respect of such goods held in stock on the appointed day. Question 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in terms of Schedule I to the CGST Act, 2017. Question 14 : Whether separate sequence numbers can be maintained for invoices issued by the Registered Person in respect of supplies made under GST? Answer : In terms of Rule 46(b) of the CGST Rules, 2017 single or multiple series of invoices can be raised by the Registered Person for the supplies made under GST as long as such invoice numbers are unique for a financial year. Question 15 : Which is the document required to be issued by the Registered Person for supply of goods from one premises to another premises under the same registration number? Answer : In terms of Rule 55(1)(c) of the CGST Rules, 2017 such movements have to be effected under the cover of a deliv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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