Homeopathic Medicines Having Single, Two Or More Constituents Attract 5% GST Post Rate-Revision: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that homeopathic medicines having a single, two or more components formulated exclusively in alignment with the Drugs and Cosmetics Act, irrespective of retail sale, attracted 5% GST. In a ruling by Shri. Shafeeq S (Member- Central Tax) and Shri. Jaydip Kumar Chakrabarti (Member-State Tax) from the two Tariff Entries 3003 and 3004 inferred that medicines manufactured by the Applicant consisted of two or more constituents mixed together for therapeutic or prophylactic uses. These medicines available in liquid and globule form were not put up in measured doses or in forms or packing for retail sale and hence, would be covered by Tariff item no. 30039014. The West Bengal AAR referred to September 19, 2025 Rate Schedule notified pursuant to the 56th GST Council Meeting. Applicant sought for the appropriate HSN code and tax rate of medicaments manufactured by it. The 56th GST Council Meeting recommended reduction of GST on all other drugs and medicines from 12% to 5%. Vide Notification No. 09/2025 – Central Tax (Rate) Dated September 19, 2025 Rate Schedule I was notified. To charge GST, two categories of homeopathic medicaments were formulated by the Applicant. These medicaments were exclusively in terms of authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 or Homoeopathic Pharmacopoeia of India or the United States of America or the United Kingdom or the German Homoeopathic Pharmacopoeia. These were medicaments (including those used in Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic systems) consisting of single constituent and other was medicaments consisting of two or more constituents. These were available in 3X, 3, 6,12,18,30,200, 1M, 10M,50M potencies and in 2.5ml, 5ml, 10ml+2ml, 20ml, 30ml+2ml, 100ml and 450ml pack size. The West Bengal AAR clarified that medicaments manufactured by Applicant having single, two or more constituents, put up in measures doses for retail sale or not, in both the cases the rate of applicable of GST was 5% GST comprising of 2.5% CGST + 2.5% SGST. As for under which Entry of Notification No. 01/2017- CTR dated June 8, 2017, as amended up to date would the medicaments fall, the West Bengal AAR cited Serial Nos. 233 and 234. Case Name: Sett Dey And Co Homoeo Lab For Applicant: Advocate R.C. Agarwal Click here to read the AAR Order.

Homeopathic Medicines Having Single, Two Or More Constituents Attract 5% GST Post Rate-Revision: West Bengal AAR

Parul Bose

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