Active Pharmaceutical Ingredients not eligible for concessional rate of GST as not directly administered in humans: AAR

  • GST
  • Case Law
  • High Court

Fact of the Case 

  • 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.