Summary
- The Customs Authority for Advance Rulings, Mumbai has determined that bulk drugs/Active Pharmaceutical Ingredients (APIs) imported by Sun Pharmaceutical Industries Limited are eligible for a concessional IGST rate of 5%.
- This ruling is based on Notification No. 9/2025-Integrated Tax (Rate) and confirms that the definition of "drugs" under the Drugs and Cosmetics Act includes APIs used in manufacturing and clinical studies.
- The Authority distinguished this case from previous rulings that narrowly defined "drugs," affirming the broad interpretation necessary for tax benefits.
- This decision could significantly impact pharmaceutical imports, potentially lowering costs for manufacturers engaged in drug development and testing.
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