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The pharmaceutical Pellets and Granules except Orlistat pellet manufactured by the applicant can be classified as medicaments under Sl.No.62 of Schedule II of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and subject to GST at the rate of 12%

Classification of goods— In the instant case, the applicant has represented that they are holding manufacture license for manufacturing sale of pharmaceutical pellets and granules for treatment of various ailments. They have submitted that these pellets and granules are at a pre stage and ready to be filled into capsules are compressed into tablets. That these are not in measured doses which can be sold in retail markets. That they are paying 18% tax on these goods under CGST & SGST and that they are of the opinion that they have to pay 12%.

Question raised for advance ruling is as follows—

Whether the pharmaceutical Pellets and Granules manufactured by the applicant can be classified as Medicaments under Sl.No.62 of Schedule II of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and subject to GST at the rate of 12%.

The applicant has submitted that they are into manufacturing of pharmaceuticals granules from active pharmaceutical ingredients which are in the form of pellets and granules and that these are not put in measured doses which can be used in retail sale.

The applicant has given a list of (15) products manufactured by them and also their constituents. As seen from the list, these are pharmaceutical products with necessarily one active ingredient and more than one excipient.

The contention of the applicant is that, these (15) products have more than one constituents and are not readily usable for retail sale and therefore they are eligible to be classified under the entry in Serial No. 62 of the 2nd Schedule to the Notification No. 01/2017 dated:28.06.2017.

Obesity is not a disease and hence reduction of weight cannot be seen as a treatment against a disease.

Therefore except the product Orlistat which does not fit into the above definition, others fall under medicaments used in therapeutic or prophylactic applications.

Further as seen from the submissions made by the applicant, these products are made up of two or more constituents i.e., one active ingredient and one or more excipient.

Held that— The pharmaceutical Pellets and Granules except Orlistat pellet manufactured by the applicant can be classified as medicaments under Sl.No.62 of Schedule II of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and subject to GST at the rate of 12%

The pharmaceutical Pellets and Granules except Orlistat pellet manufactured by the applicant can be classified as medicaments under Sl.No.62 of Schedule II of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and subject to GST at the rate of 12%

Question raised for advance ruling is as follows—

Obesity is not a disease and hence reduction of weight cannot be seen as a treatment against a disease.

Therefore except the product Orlistat which does not fit into the above definition, others fall under medicaments used in therapeutic or prophylactic applications.

Further as seen from the submissions made by the applicant, these products are made up of two or more constituents i.e., one active ingredient and one or more excipient.