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

Clarification Needed on GST Treatment for Expired Medicine Returns; Input Tax Credit Reversal Required, Amendments Suggested. A participant in a discussion forum inquired about the Goods and Services Tax (GST) treatment for returned expired pharmaceutical goods, noting that they had read such returns are not considered a supply but could not find official documentation. A respondent clarified that while expired medicine returns are not classified as a supply, the definition of 'Supply' needs amendment. The Joint Commissioner (GST) had previously clarified that Input Tax Credit (ITC) on expired medicines must be reversed. It was suggested that the issue be raised with the GST Council Chairperson for necessary amendments.