The Telangana Authority for Advance Ruling(TAAR) has ruled that manufacturing of teicoplanin and caspofungin under drugs & medicines should be attracted 5 % Goods and Service Tax.
The applicant Stanex Drugs & Chemicals Private Limited,is one of the fastest growing pharmaceuticals in India, It was established in the year 2004 and has seen phenomenal growth and is active in developing, Manufacturing & Marketing of Domestic and Export comprehensive range of pharmaceutical formulation such assmall value parental.
The applicant has sought an advance ruling in respect of Determination and of the liability to pay tax on any goods or services or both Teicoplanin and Caspofungin.
Nitya Kamireddy, Director and Sri M.V.L. Narasimha Rao, Advocate on behalf of the applicant argued that the M/s. SDCPL the manufacturing of the above products are taxable @ 5% by virtue of entry No.180 ( List -1 Entry No 103 ) 181 , 181A Schedule – 1 of the Notification 01/2017 Central Tax Rate dated 28-06.2017 Drugs and medicines , formulations and Medicaments comes under HSN code 3002 and 3004,
The two member bench of Authority of Advance Ruling comprising S.V. Kasi Visweswara Rao (Additional Commissioner commercial Taxes) and Sahil Inamdar, I.R.S(Additional Commissioner Custom & Indirect Taxes) observed that manufacturing of teicoplanin and caspofungin under drugs & medicines should be attracted 5 % Goods and Service Tax.
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