GST-Pharmaceuticals dealers – information-reg.
C1-24614/16/CT Eoffice 11137/17 Dated:- 15-7-2017 Kerala SGST
GST – States
Kerala SGST
Kerala SGST
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Document 1
Office of Commissioner,
Kerala Goods and Services Taxes Department,
Tax Tower, Thiruvananthapuram
C1-24614/16/CT Eoffice11137/17
Dated 15th July 2017
ADVISORY – 2
Sub: GST Pharmaceuticals dealers – information – reg.
As many Pharmaceutical Dealers and their association represented various
matters the following advisory is issued for information and awareness
generation.
1. In earlier VAT system, importers and Manufacturers in Medicines and drugs
are entitled for composition. The rate of compounding is 5% of MRP. The
MRP means maximum price printed on the package of any goods, for
which goods are sold to the ultimate consumer.
2. The subsequent registered dealers are exempted from payment of tax if,
he has purchased medicine from
(a) an importer or manufacturer who had opted
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and diagnostic
test
kits
specified
at
S.No.180
above
and
Formulations
specified at
S.No.181
above,
intended for
personal use.
Other Drugs 12%
and medicines
intended for
personal use
5. Under GST, the Medicine and drug dealers, whose aggregate turnover in
a financial year exceeds Rs 20 lakh has to take registration. “aggregate
turnover” means the aggregate value of all taxable supplies (excluding
the value of inward supplies on which tax is payable by a person on
reverse charge basis), exempt supplies, exports of goods or services or
both and inter-State supplies of persons having the same Permanent
Account Number, to be computed on all India basis but excludes central
tax, State tax, Union territory tax, integrated tax and cess.
6. The following types of Medicine and drug dealers are liable to take
registration even though their aggregate turnover is below Rs. 20 lakhs per
year (as mentioned in point No.5).
Persons making Interstate outward supply.
âšÂ
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intimation in FORM GST CMP-02, duly signed or
verified through electronic verification code, on the common portal,
either directly or through a Facilitation Centre notified by the
Commissioner and shall furnish the statement in FORM GST ITC-03 in
accordance with the provisions of sub-rule (4) of rule 44.
Page 3 of 7
9. Every registered person entitled to take credit of input tax shall, within
ninety days of the appointed day, submit a declaration electronically in
FORM GST TRAN-1, duly signed, on the common portal specifying therein,
separately, the amount of input tax credit of eligible duties and taxes, as
defined in Explanation 2 to section 140, to which he is entitled under the
provisions of the said section.
10. Unlike in VAT regime (The dealer can opt for compounding because, the
turnover of medicines and drugs are not reckoned for composition
purpose), in GST, the registered persons turnover of Medicines and drugs
shall also be taken for computing the aggregate tu
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ure uniformity and clarity to consumers).
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13. With regard to availability of Input Tax Credit it is explained in the table
below-
VAT regime
GST regime
Remarks
Registered VAT Dealer
Opting for composition No input tax credit
Compounding dealer
Compounding dealer
Opting for composition No input tax credit
Opting for regular
registered dealer
Registered
dealer
Page 5 of 7
regular Opting for regular
registered dealer
100% ITC is eligible if
goods in stock are
purchased from 1-7-
2016 and duty paid
document
available
are
and
reflected in Returns.
VAT paid will be
eligible for ITC.
Eligible for 40% ITC if no
duty paid document,
and other stipulations
stated above and on
furnishing the stock
details in the FORM GST
TRAN I
100% ITC is eligible if
goods in stock are
purchased from 1-4-
2017 and duty paid
document
available
are
and
reflected in Returns.
VAT paid
will
eligible for ITC.
be
O
Eligible for 40% ITC if no
duty paid docum
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