TaxTMI 
TaxTMI 
2025 (12) TMI 985
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.... At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant is manufacturer of Medicaments consisting single constituents (including those used in Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems), manufactured exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 (23 of1940) or Homeopathic Pharmacopoeia of India or the United States of America or the United Kingdom or the German Homeopathic Pharmacopoeia, as the case may be, and sold under the name as specified in such books or pharmacopoeia. Fu....
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....opathic Pharmacopoeia. Further the applicant also manufacturing the Medicaments consisting of two or more constituents which have been mixed together for Therapeutic or Prophylactic uses exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 (23 of1940) or Homeopathic Pharmacopoeia of India or the United States of America or the United Kingdom or the German Homeopathic Pharmacopoeia. Therefore the applicant wants to know what is the correct full rate is of GST and there HSN of these two products. 2.2 The categories of medicine which are manufactured exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1640 or Homeopathic pharmacopoeia or the German Homeopathic Pharmacopoeia and sold under the name as specified in such books or pharmacopoeia are as follows: 1) Potentisation: These medicines are available in 3X, 3, 6,12,18,30,200, 1M, 10M,50M, CM potencies and are available in 2.5ml, 5ml, 10ml+2ml, 20ml, 30ml+2ml, 100ml and 450ml pack size. These medicines are available in both liqu....
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....t Schedule to the Drugs and Cosmetics Act, 1940 or Homoeopathic Pharmacopoeia of India or USA or UK or Germany having two or more constituents? 4.3 As per the statement furnished and the submissions made in course of hearing, the applicant is charging GST @ 5% on the goods Medicaments (including those used in Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic systems ) consisting single constituent and manufactured exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 (23 of1940) or Homoeopathic Pharmacopoeia of India or the United States of America or the United Kingdom or the German Homoeopathic Pharmacopoeia on the ground that it falls under HSN 30039014 as mentioned in Schedule I of Notification No. 34/2017-Central Tax (Rate) Dated 13.10.2017. It is stated that the applicant is charging GST @ 12% for the goods Medicaments (including those used in Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic systems ) consisting of two or more constituents exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and C....
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....e sold under the name as specified in such books or pharmacopoeia Serial no. 233 as above refers to the medicaments that i) exclude goods of heading no. 3002, 3005 or 3006 of Schedule I ii) consist of two or more constituents which have been mixed together for therapeutic and prophylactic uses iii) are not put up in measured doses or in forms or packing for retail sale iv) include Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic systems medicaments Again serial no. 234 refers to the medicaments that i) exclude goods of heading no. 3002, 3005 or 3006 of Schedule I ii) consist of mixed or unmixed products for therapeutic and prophylactic uses iii) are put up in measured doses or in forms or packing for retail sale including those in the form of transdermal administration systems iv) include Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic systems medicaments put up for retail sale 4.6 We should first define the term 'medicament'. The GST Act nowhere defines the term. The word 'medicament' is derived from Latin word medicamentum meaning drug, remedy, or medicine. According to Merriam-Webster Di....
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....ds of Heading 3002, 3005 or 3006) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale 3004 Medicaments (excluding goods of Heading 3002, 3005 or 3006) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration system) or in forms or packings for retail sale The relevant further sub-headings of both the entries are reproduced as under: Tariff item Description of goods 3003 90 - Other --- Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic systems medicaments : 3003 90 14 ---- Of Homoeopathic system 3004 90 -Other --- Ayurvedic, Unani, Siddha, Homoeopathic or Biochemic systems medicaments : 3004 90 14 ---- Of Homoeopathic system The Chapter Note 3 of Chapter 30 has clarified the mixed and unmixed products in the following way: 3. For the purposes of headings 3003 and 3004 and of Note 4(d) to this Chapter, the following are to be treated: (a) as unmixed products: (1) unmix....
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....ST. Question 2: What is the HSN code and tax rate of medicaments manufactured exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 or Homoeopathic Pharmacopoeia of India or USA or UK or Germany having two or more constituents? Answer: It is covered by Tariff item no. 30039014 and accordingly it will come under entry no. 233 of Schedule I of Notification No. 1/2017-Central Tax (Rate) Dated 28.06.2017, as amended up to date when it is not put up in measured doses or in forms or packing for retail sale. It is covered by Tariff item no. 30049014 and accordingly it will come under entry no. 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate) Dated 28.06.2017, as amended up to date when it is put up in measured doses (including those in the form of transdermal administration systems) or in forms or packing for retail sale. In both the cases the rate of applicable of GST is 2.5% CGST + 2.5% SGST. Rectification Order At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) ....