A Parliamentary Panel has urged the Centre to grant GST exemption to imported pharmaceutical products utilized by hospitals or scientific institutions engaged in life-saving medication and treatment research.
Adhir Ranjan Chowdhury, a Congress member and the Panel’s Chairman, emphasized that offering incentives to entities like cancer institutes would significantly bolster the development of medicines aimed at addressing severe and life-threatening conditions.
The Committee suggested that the Finance Ministry should bring up the matter in front of the GST Council to consider exempting imported pharmaceutical products for organizations deeply involved in crucial scientific research.
“Additionally, the committee believes that hospitals engaged in researching life-saving medications and treatments should also be considered for this exemption.”
In its report on the Inappropriate exemption of Integrated Goods and Services Tax on imported Pharmaceutical Products, the Public Accounts Committee (PAC) highlighted the issue of frequent notifications followed by clarifications regarding specific imports by publicly funded research institutions, indicating a lack of clarity and coordination within the department’s different branches.
“The Tax Research Unit (TRU)/CBIC should ensure that notifications contain illustrative examples for better understanding and that court cases are easily searchable using relevant keywords. Moreover, they should develop an interface for swift resolution of doubts among assessing officers,” recommended the Committee.
