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Impact of GST Rate on Life-Saving Drugs and Other Pharma

The Indian pharmaceutical industry is the principal supplier of generic drugs all over the world, with 80% of all AIDS drugs produced in India. The UN has provided licenses to six Indian pharmaceutical labs to make generic anti-AIDS medicine for all the developing nations. Indian pharmaceutical companies manufacture 20% of all generic drugs used around the world.
Current Tax Law on Pharmaceutical ProductsThe average VAT rate for most of the pharmaceutical products is around 5% and for the formulations is 9%. The excise duty charged on pharma products was 12.5%. To be fair though, the government provides relief on excise to pharmaceutical product manufacturers by introducing excise-free manufacturing zones. Prior to the introduction of excise-free manufacturing zones, 40% of the pharmaceutical product manufacturers were located in Gujrat. Excise-free zones were a crucial step in providing relief to small manufacturers in remote places to be competitive in the national market. Manufacture…

GST Enrollment/ Registration to re-open again on 25 June 2017 at GST Portal (; Presently open from 1 June 2017 to 15 June 2017

The enrollment window has been re-opened on 1 June 2017 for 15 days for taxpayers those who could not enroll with GST Portal upto 30 April, 2017.

Revised Schedule/ Last Date for GST Enrollment/ Registration (State-wise) at GST Portal
The GST Registration process is open at GST Portal ( from 1 June, 2017 to 15 June 2017 and will again re-open on 25 June 2017, to give another opportunity to remaining taxpayers. Further,  the taxpayers who had enrolled but could not digitally sign the enrollment form also can now complete the process of enrollment.
Taxpayers those who are unable to enroll/ register at the GST Portal within the extended deadlines upto 15 June 2017, need not panic. Such taxpayers will get another opportunity as per GST law, i.e. all taxpayers  registered under VAT, Service Tax, Excise, etc. will be given a valid GST registration, if they have a valid PAN.
This last opportunity for GST registration is applicable for taxpayers of all States/ Union Territories,…

Filing Form 10E Is Mandatory to Claim Relief Under Section 89(1)

What Is Relief under Section 89(1)? Tax is calculated on your total income received during the year. If your total income includes any past dues paid in the current year, you may be worried about paying a higher tax on such arrears (usually tax rates have gone up over the years). To save you from any additional burden of tax due to delay in receiving income, the tax laws allow a relief under Section 89(1). If you have received any portion of your salary in arrears or in advance, or you have received a family pension in arrears, you are allowed some tax relief under Section 89(1) read along with Rule 21A. In simple words, you are saved from paying more tax because of delay in payment to you. Income Tax Notice for Non-filing of Form 10E Starting income tax returns for the financial year 2014-15 (the assessment year 2015-16), the Income Tax Department has made it mandatory to file Form 10E if you want to claim relief under Section 89(1).  Taxpayers who have claimed relief under Section 89…

What is GST? Goods & Services Tax Law Explained with Facts & Examples

The Goods and Services Tax or GST is scheduled to be launched on the 1st of July, and it is set to revolutionize the way we do our taxes. But what is GST and how will it reform the current tax structure? And most importantly, why does the country need such a huge overhaul in its taxation policies? We answer these pressing questions in this in-depth article.
What is GST? Goods & Services Tax is acomprehensive,multi-stage,destination-based taxthat will be levied on every value addition. To understand this, we need to understand the concepts under this definition. Let us start with the term ‘Multi-stage’. Now, there are multiple steps an item goes through from manufacture or production to the final sale. Buying of raw materials is the first stage. The second stage is production or manufacture. Then, there is the warehousing of materials. Next, comes the sale of the product to the retailer. And in the final stage, the retailer sells you – the end consumer – the product, completing its li…