GST on Expired pharma goods

[LAKSHMINARAYANAN TR]

Dear All

I have read in the news that government has considered return of expired pharma goods are not to be treated as supply( around end of Dec 2017). But I don't find any relevant circular or notification to this effect. Can any of you please guide me further?

Best regards

Durai

[KASTURI SETHI]

"Return of expired medicines is not a supply." Definition of 'Supply' to this effect has to be amended for this purpose. On 1.12.17 the Joint Commissioner (GST) wrote a letter to Sh.D.G.Shah, Secretary General, IPA, Mumbai wherein it was clarified that ITC taken on expired medicines will have to be reversed.

However, matter should be brought to the notice of the Chairperson, GST Council for amendment.

AI Summary

Return of expired medicines not treated as supply, requiring amendment to supply definition and reversal of input tax credit. Returns of expired medicines are stated not to be a Supply, but that status requires amendment of the statutory definition of Supply; administratively, input tax credit on expired medicines must be reversed pending such amendment.