AAR holds that bulk drugs viz, Efavirenz, Emtricitabine, Suntinib Malate, Raltegravir Potasium and Latanoprost fall within ambit of Notification No. 1/2017-Central Tax (Rate), eligible for concessional GST of 5%.
Further notes applicant’s argument that goods fall under 2 entries – (i) Entry 180 under Schedule I – 5% which covers ‘specified drugs and medicines’, and (ii) Entry 40 under Schedule III – 18% that covers ‘organic chemicals’ and accordingly, it was entitled to beneficial classification; AAR observes that even though said drugs are in bulk, they are squarely covered by List 1 of Sr. No. 180 of Schedule I to Notification No. 1/2017-Central Tax (Rate).
Opines, “it is a settled law that, the specific entry overrides the general entry, the commodities dealt by the applicant are covered by specific entries, the rate of tax applicable, is the rate specified against the specific entry only” : Andhra Pradesh AAR
Citation: [TS-242-AAR-2018-NT]