GST: CBIC prescribes Procedure for Return of Time Expired Drugs or Medicines [Read Circular]

Drugs - GST - Taxscan

The Central Board of Indirect Taxes and Customs ( CBIC ) has prescribed the procedure for return of time expired drugs or medicines under the Goods and Services Tax (GST) regime.

The common trade practice in the pharmaceutical sector is that the drugs or medicines are sold by the manufacturer to the wholesaler and by the wholesaler to the retailer on the basis of an invoice/bill of supply as the case may be. It is significant to mention here that such goods have a defined life term which is normally referred to as the date of expiry. Such goods which have crossed their date of expiry are colloquially referred to as time expired goods and are returned back to the manufacturer, on account of expiry, through the supply chain.

The circular said that the retailer/ wholesaler can either Return the time expired goods treating it as fresh supply or can return the expired goods by issuing credit notes.

The circular discussed the scenarios in relation to the return of goods on account of expiry of the same, it may be applicable to such other scenarios where the goods are returned on account of various other reasons.

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