RESEARCH & DEVELOPMENT UNIT UNDER GST

[SURYAKANT MITHBAVKAR]

We have manufacture of Pharmaceutical Machinery set up new Research & Development unit within our existing Unit.

We have opted DSIR certificate from concerned authority.

We purchase raw material for production activity for R & D unit which is exempted from GST or Not ?

While selling the product what benefit under GST.

[KASTURI SETHI]

Not exempted from GST.See Serial No. 451 of Notification No.1/17-Central Tax (Rate) dated 28.6.17

[Nash Industries I Pvt Ltd]

Please refer to notification 45/2017 Central Tax (Rate) dated 14.11.2017 wherein the GST rate is reduced to 5% (CGST+SGST).

It may answer your query.

Regards

S.Ramaswamy

[Ganeshan Kalyani]

Is there any supply of goods from R&D unit?

AI Summary

Research and development GST treatment: inputs generally not exempt; supplies may attract a reduced GST rate under notification. The issue concerns whether raw materials procured for a DSIR-certified R&D unit are exempt from GST and what GST rate applies to products sold from that unit. Respondents indicate such inputs are not exempt from GST, while a later notification provides for a reduced GST rate on specified items. Application of these positions depends on whether the R&D unit makes taxable supplies of goods, which will determine entitlement and rate treatment.