Page 136 - GSTL_ 28th May 2020_Vol 36_Part 4

582 GST LAW TIMES [ Vol. 36
8.9 In view of the foregoing the question before us to decide is whether
the bulk drug ‘Micafungin Sodium’ being supplied by the applicant qualifies to
be ‘Micafungin Sodium for injection’, so as to attract the concessional rate of GST
i.e. 5% GST. It is an admitted fact that the product being supplied by the appli-
cant cannot be directly administered as injection. The concessional rate of GST is
applicable only to the product Micafungin Sodium which is ready for adminis-
tering by way of injection. In the instant case the applicant supplies bulk drug
Micafungin Sodium to their customers and hence the said drug becomes raw
material to the said customers. The applicant contends that their bulk drug is
essential for ‘Micafungin Sodium for injection’ and hence their bulk drug gets
covered under the entry for concessional rate of GST. The entry would have been
‘Micafungin Sodium’, had the intention of the Government been to extend the
benefit of concessional rate to the bulk drugs/raw material. Therefore 5% GST is
not applicable to the bulk drug Micafungin Sodium, in terms of Sl. No. 114 of
List I to Entry No. 180 of Schedule I to the Notification No. 1/2017-Central Tax
(Rate), dated 28-6-2017.
9. In view of the foregoing, we pass the following :
RULING
10. The sale of Micafungin sodium by the DTA unit of the applicant is
not covered under Serial No. 114 of Entry No. 180 of the Notification No. 1/2017-
Central Tax (Rate), dated 28-6-2017 and therefore, is not entitled for concessional
rate of GST at the rate of 5%

_______

2020 (36) G.S.T.L. 582 (A.A.R. - GST - T.N.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
TAMIL NADU
Ms. Manasa Gangotri Kata, Member (CGST) and Thiru Kurinji Selvaan
V.S., Member (TNGST)
IN RE : BRITANNIA INDUSTRIES LIMITED
Order No. 08/AAR/2020, dated 25-2-2020 in Application Sl. No. 35/2019
Milk - UHT Sterilized Flavoured Milk - Product consists of Standard-
ised/Toned milk (87% to 89%) without removal of fat content thereon, sweet-
ened with around 10% of sugar to which stabilizers, flavours, etc. are added -
Products being marketed as Thick shakes’ and ready for consumption, specifi-
cally excluded under Heading 0402 of Customs Tariff Act, 1975, as seen from
the Explanatory notes to HSN of the said chapter - Product not lacking any
natural milk constituents nor any natural milk constituents added to the prod-
uct, therefore, not classifiable under Heading 0404 ibid also - Product appro-
priately classifiable under Tariff Item 2202 99 30 ibid as ‘Beverages containing
milk’ as also clarified by GST Council. [paras 6.4, 6.5, 6.6, 6.7]
Classification of goods - It would not be proper to transplant the pro-
visions of FSSAI Act, which has a different objects and purposes, for deter-

GST LAW TIMES  28th May 2020  136