KAR AAR: 12% GST Rate Applicable on Pharmaceutical Reference Standards Made Laboratory Reagent

The Karnataka Authority of Advance Ruling (AAR) has passed a ruling that 12% Goods and Services Tax rate is applicable on import of Pharmaceutical Reference Standards prepared Laboratory Reagents.

The petitioner, Kaustubha Scientific Research is a person registered as per the proviso of the Central Goods and Services Tax Act, 2017 in addition to the Karnataka Goods and Services Tax Act, 2017 ( occupied in the circulation of Pharmaceutical Reference Standards from Pharmacopoeias like European Pharmacopoeia, Japanese Pharmacopoeia, Indian Pharmacopeia, British Pharmacopeia and Japanese Pharmacopoeia).

The petitioner is seeking the advance ruling on the concern of whether the entry is applicable for preparing laboratory reagents/ Pharmaceutical Reference Standards in the aforesaid Notification bearing number. 01/2017-IT (R) is Sr. No. 80 of Schedule II that includes a levy of 12% or Sr. No. 453 of Schedule III including a levy of 18 %.

The Coram of Mashood Ur Rehman Farooqui and Dr. Ravi Prasad passed a ruling that the Pharmaceutical Reference Standards (Prepared Laboratory Reagents) that have been imported by the Appellant and that have been categorized as per Tariff Item bearing number 3822 00 90 of the Customs Tariff Act, 1975 are included under Entry No. 80 of Schedule-II to Notification No. 1/2017-Integrated Tax (Rate), that is dated 28th June 2017 that includes imposing a levy of Integrated Tax at the rate of 12%.