The applicant was engaged in manufacture of Active Pharmaceutical Ingredients known as bulk drugs namely Danuorubicin, Epirubicin, Idarubicin and Zoledronin Acid.
It filed an application for advance ruling to determine whether it would b eligible to claim the benefit of lower rate of 5% or not.
The Authority for Advance Ruling observed that bulk drugs are raw material/ingredient of pharmaceutical and they are the Active Pharmaceutical Ingredients (i.e. API) of the drug and used as such or as an ingredient in any formulation.
But the concessional rate of GST would be applicable only to the medicine or drugs, which are ready for administering in the human being or person.
The applicant's products cannot be directly administered in a human being. Therefore, 5% GST would not be applicable to the bulk drug Danuorubicin, Epirubicin, Idarubicin and Zoledronin Acid.
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