GST - Can Pharma formulation industry sells API
2 years ago
1. Can Pharma formulation industry sells API (Active Pharma Ingredients) product (as such) which is imported under advance authorization with nil rate of duties/taxes to locally in India with GST in applicable tax rate.
2. The company, which purchases API (as said in point no.1), can sells its final product to the pharma formulation industry at 0.1% tax rate (deemed export).
3. Pharma company can exports this final product (said in point no. 2) under LUT to complete the export obligation for Advance Authorization.
A.Dear client,
1. GST Charges are levied on the sale of medicines being imported.
2. Nominal GST rate of 0.1%under CGST
3. Yes, Pharma company can export the final product. An advanced authorization is issued to allow duty free import of input, which is physically incorporated in export product.
Hope it clarify your requirement.
Thank you.
1. GST Charges are levied on the sale of medicines being imported.
2. Nominal GST rate of 0.1%under CGST
3. Yes, Pharma company can export the final product. An advanced authorization is issued to allow duty free import of input, which is physically incorporated in export product.
Hope it clarify your requirement.
Thank you.
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