ISSN: 2574-7797
Authors: Mrinal SK and Rao J*
Goods and Services Tax is one of the significant tax reforms which subsume 7-8 taxes that are applicable to the pharma sector. They include Value Added Tax, service tax, octoroi tax, Central Sales Tax, excise duty, custom duty, additional excise duty, etc. These multiple taxes are then categorised into three types that are State Goods and Service Tax, Central Goods and Service Tax and Integrated Goods and Service Tax. Goods and Services Tax affect the manufacturing by having different rates of tax for raw materials and for end product that is formulation. The effects of Goods and Services Tax with rates 0%, 5% and 12% on price are depending upon the category of the item or product or health care service. In this review we have tried to discuss role of GST that is positive as well as negative role on Indian pharma sector.
Keywords: Goods and Services Tax, Tax structure, SGST, CGST, IGST, Rates of GST, Lifesaving drugs, Health care services
