The Karnataka Appellate Authority of Advance Ruling (AAAR) ordered that the micafungin sodium is liable to file 5% GST.
The petitioner is the owner of Biocon Limited (DTA unit) makes generic active pharmaceutical ingredients (APIs), novel biologics, biosimilar insulins, and antibodies. The petitioner buys “Micafungin Sodium” through the Special Economic Zone (SEZ) 
Get to know the complete details of supplies given to SEZ under GST India. Also, we have covered GST rules, provisions and goods export to SEZ. Read more unit of M/s Biocon, who sells a similar item in bulk.
The petitioner sells the drugs in bulk volume to the 3rd party customers which again uses it to manufacture the injections. The problem arises is that the sale of Micafungin sodium by the DTA unit of the petitioner comes under Serial No. 114 of Entry No. 180 of the Notification No.1/2017-Central Tax (Rate) on June 28, 2017, and hence, attracts 5% to GST.
While the AAR states that under Serial No. 114 of Entry No. 180 of the Notification No. 1/2017-Central Tax (Rate) on June 28, 2017, the sale of Micafungin sodium by the DTA unit of the petitioner does not cover and thus it is liable to pay the GST Rate of 5% 
Grab the information of revised GST slab rates on consumer products in India, Although GST council finalized the slab rates like 5%, 12%, 18% and 28%.
The petitioner also states that the CDSCO permit in India is entitled to only Micafungin Sodium as an injection. This drug is specifically used for injection purposes and not to apply in any other form it is to be allowed through the drug control law in India.
Micafungin Sodium is a raw material to make the injection, said the petitioner to lower Authority. The applicant added that Micafungin Sodium is only a raw material which is sold in the salt form and gets merged with the sodium chloride, only electrolyte is used for administering intravenously.
In the presence of D.P. Nagendra Kumar and M.S. Shrikar, Authority of Advance Ruling (AAR) 
Get to know about AAR (Authority for Advance Rulings) under GST India along with its mechanism. Also, we have described its objectives, powers, orders, etc issued the order that the sale of Micafungin Sodium by the DTA unit of the Appellant is covered under Serial No. 114 of Entry No. 180 of the Rate Notification No 01/2017 IT (R) / CT (R) and hence attracts GST at the rate of 5%.
