GST Rates for Pharmaceutical Products

What is GST?

It is an Indirect Tax which has replaced a lot of Indirect Taxes in India. GST is one indirect tax for the entire country. The GST (Goods and Services Tax) was passed in the Parliament of India on 29th March 2017 and it came into effect on 1st July 2017.

What are the components of GST?

There are 3 taxes applicable under this system: CGST, SGST & IGST.

CGST: Collected by the Central Government on an intra-state sale (Eg: transaction happening within Karnataka)
SGST: Collected by the State Government on an intra-state sale (Eg: transaction happening within Karnataka)
IGST: Collected by the Central Government for inter-state sale (Eg: Karnataka to Kerala)

GST rates for Pharmaceutical Products

From July 1, 2017, following GST slabs are applicable to all the pharmaceutical products. We have categorized the products with their respective GST Rates.

GST Rates for Pharmaceutical Products @Nil

- Nil for Human Blood and its elements

- Nil for All types of contraceptives

GST Rates for Pharmaceutical Products @5%

- 5% for Human Blood or Animal Vaccines
- 5% for Diagnostic tools for detection of all types of hepatitis

- 5% for Desferrioxamine deferiprone or injection

- 5% for Cyclosporin

- 5% for Medicaments (including veterinary medicines) used in bio-chemic systems and not having a brand name

- 5% for Oral re-hydration salts

- 5% for medicines including their salts and esters and diagnostic test kits, defined in List 3/List 4 appended to the notification No.12/2012- Customs dated the 17th March 2012.

- 5% for Formulations manufactured from the bulk drugs defined in List 1 of notification No.12/2012 - Central Excise, dated the 17th March 2012.

GST Rates for Pharmaceutical Products @12%

12% for All goods not defined elsewhere including

a) Drugs (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more components which have been mixed collectively for prophylactic or therapeutic uses, not put up in estimated doses or in forms or packings for retail sale, including Siddha, Unani, Ayurvedic, homeopathic or Bio-chemic systems medicaments

b) Drugs (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale, including Ayurvedic, homoeopathic Siddha or Biochemic, Unani, systems medicaments, put up for retail sale

c) 12% for Wadding, bandages, gauze, and similar articles (for example, adhesive plasters, dressings, poultices), impregnated or coated with pharmaceutical substances.

d) 12% for forms or packings for retail sale for surgical, medical, dental or veterinary purposes

e) 12% Pharmaceutical products specified in Note-4 to this Chapter such as Sterile surgical catgut, similar sterile suture materials and sterile tissue adhesives for surgical wound closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics; sterile surgical or dental adhesion barriers, whether or not absorbable, etc., Waste pharmaceuticals (other than contraceptives)

GST Rates for Pharmaceutical Products @18%

- 18% for Nicotine polacrilex gum.

 

Do you know what is the process of GST registration or how to file GST return?

GST Registration process in India

What is GST and GST Registration Process?

What is GST?

It is an Indirect Tax which has replaced a lot of Indirect Taxes in India. GST is one indirect tax for the entire country. The GST (Goods and Services Tax) was passed in the Parliament of India on 29th March 2017 and it came into effect on 1st July 2017.

What are the components of GST?

There are 3 taxes applicable under this system: CGST, SGST & IGST.

CGST: Collected by the Central Government on an intra-state sale (Eg: transaction happening within Karnataka)
SGST: Collected by the State Government on an intra-state sale (Eg: transaction happening within Karnataka)
IGST: Collected by the Central Government for inter-state sale (Eg: Karnataka to Kerala)

GST Registration Process

Perform the following steps for the Registration Application for Normal Taxpayer:

1. Visit the GST Portal.

2. Go to the Services > Registration > New Registration option.

gst registration process

The Application form for the GST Registration is divided into two parts as Part A and Part B.

GST Registration Process for Part A:

gst registration form3. The New Registration page is displayed. Select the New Registration option.

4. In the I am a drop-down list, select the Taxpayer as the type of taxpayer to be registered.

5. In the State/UT and District drop-down list, select the state for which registration is required and district.

6. In the Legal Name of the Business (As mentioned in PAN) field, enter the legal name of your business/ entity as mentioned in the  PAN database.

7. In the Permanent Account Number (PAN) field, enter PAN of your business or PAN of the Proprietor.

Note: PAN is mandatory for registration with Goods and Services Tax.

8. In the Email Address field, enter the email address of the Primary Authorized Signatory.

9. In the Mobile Number field, enter the valid Indian mobile number of the Primary Authorized Signatory.

Note: Two different One Time Password (OTP) will be sent on your email and mobile number you just mentioned for authentication.

10. In the Type, the characters you see in the image below the field, enter the captcha text.

11. Click on the PROCEED button.

The OTP Verification page is displayed.

12. In the Mobile OTP field, enter the One Time Password you received on your mobile number.

13. In the Email OTP field, enter the One Time Password you received on your email address.

14. Click on the PROCEED button.

 

The system generated a Temporary Reference Number (TRN) is displayed.

Note: You will receive the TRN acknowledgment information on your e-mail address as well as your mobile number.

gst registration trn number15. Click the PROCEED button.

GST Registration Process for Part B:

16. In the Temporary Reference Number (TRN) field, enter the TRN generated and enter the captcha text as shown on the screen.

17. Click on the PROCEED button. The Verify OTP page is displayed. You will receive the same Mobile OTP and Email OTP. These OTPs are different from the OTPs you received in the previous step.

gst registration trn form

18. In the Mobile / Email OTP field, enter the OTP you received on your mobile number and email address. OTP is valid only for 10 minutes.

Note:

• OTP sent to the mobile number and email address are same.

• In case OTP is invalid, try again by clicking the Need OTP to be resent> Click here link. You will receive the OTP on your registered mobile number or email ID again.

Enter the newly received OTP again.

19. Click on the PROCEED button.

gst registration trn otp form

20. The My Saved Application page is displayed. Under the Action column, click the Edit icon (icon in the blue square with a white pen).

gst registration form submission

The Registration Application form with various tabs is displayed.

On the top of the page, there are ten tabs as Business Details, Promoter/ Partners, Authorized Signatory, Authorized Representative, Principal Place of Business, Additional Places of Business, Goods and Services, Bank Accounts, State Specific Information and Verification. Click each tab and fill the details.

business detail gst form

After filling all the details you will see a success message is displayed. You will receive the acknowledgment in next 15 minutes on your registered e-mail address and mobile phone number. Application Reference Number (ARN) receipt is sent on your e-mail address and mobile phone number.

You can Check GST Registration Status online by click on the link.

If you are not comfortable with the theoretical part you can watch the video for the GST registration process.

GST Registration Process as a Normal Taxpayer - Part A

GST Registration Process as a Normal Taxpayer - Part B

Documents required for GST registration

Tax Laws before GST

The following is the list of indirect taxes before GST (Goods and Services Tax):