West Bengal Authority for Advance Rulings Determines GST Classification for Medicaments Under Authoritative Pharmacopoeia Formulations
In a significant ruling impacting the homoeopathic pharmaceutical sector, the West Bengal Authority for Advance Rulings (AAR) has provided clarity on the Goods and Services Tax (GST) rates applicable to medicaments manufactured under authoritative pharmacopoeia formulations. The judgment, delivered by Shafeeq S., Joint Commissioner, CGST & CX, and Jaydip Kumar Chakrabarti, Senior Joint Commissioner, SGST, addresses the GST classification and rates for single constituent and multi-constituent medicaments.
Sett Dey And Co Homoeo Lab, the petitioner, sought an advance ruling to determine the appropriate Harmonized System of Nomenclature (HSN) codes and applicable GST rates for their products. The inquiry was specifically focused on medicaments formulated according to authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940, or the Homoeopathic Pharmacopoeia of India, USA, UK, or Germany.
The judgment elucidates that medicaments consisting of single constituents, manufactured as per the specified pharmacopoeia, should be classified under HSN code 30049014, corresponding to entry no. 234 of Schedule I of Notification No. 1/2017 Central Tax (Rate). Conversely, medicaments with two or more constituents are classified under HSN code 30039014 or 30049014, depending on their packaging for retail sale. In both scenarios, the GST rate applicable is a combined 5% (2.5% CGST + 2.5% SGST).
The ruling specifically addresses the categorization of medicaments based on their formulation and packaging, emphasizing the need for uniform tax treatment across various types of homoeopathic products. The Authority stressed the importance of adhering to the classifications stipulated in the post-amended Rate Schedule of Notification No. 09/2025 - Central Tax (Rate) following the 56th GST Council meeting.
This ruling provides much-needed clarity for manufacturers in the homoeopathic sector, ensuring a consistent GST rate for medicaments irrespective of their constituent makeup, as long as they are manufactured according to the authoritative pharmacopoeias. The decision is expected to streamline tax compliance and reduce ambiguities in GST filings for homoeopathic medicament producers.
Bottom Line:
GST classification and applicable rates for medicaments manufactured under authoritative pharmacopoeia formulations.
Statutory provision(s): Central Goods and Services Tax Act, 2017, West Bengal Goods and Services Tax Act, 2017, Drugs and Cosmetics Act, 1940, Notification No. 1/2017 Central Tax (Rate), Notification No. 34/2017-Central Tax (Rate), Customs Tariff Act, 1975
Sett Dey And Co Homoeo Lab, (AAR)(West Bengal) : Law Finder Doc Id # 2822520
