HSN code mandatory on invoices from 1st April 2021 7206070155

A brief warning to the GST taxpayers regarding the compulsory HSN (Harmonized System of Nomenclature) code on all invoices was sent by the Central Board of Indirect Taxes and Customs (CBIC). This reminder of the 'National Tax Notice No. 79 /2020,' which makes all B2B invoices obligatory for HSN code, w.e.f. April 1, 2021.

This reminder has been given by CBIC to inspire GST taxpayers with this amendment made on 15 October 2020.

In this brief article, we will cover the aspects that you'll have to know about this modification to allow taxpayers to refresh and plan the details they need.

HSN code 2021 update in brief

Bioshine healthcare This update applies to different taxpayer classes. For easy understanding, we will discuss these groups one by one. More than INR 5 Crore total turnover Taxpayers

Any taxpayer whose annual gross revenue exceeds INR 5 Crore's cap shall include the HSN code in all of its tax invoices as a necessary provision.

For the measurement of the average amount, the financial year to be considered will be 2020-21.

It is also mandatory for this group of taxpayers to indicate 6 digits of both the Products and Services HSN code.

Taxpayers up to INR 5 Crore with a total turnover

Besides, all tax invoices shall list the HSN code of taxpayers whose gross turnover is below the INR 5 Crore slab.

The 4-digit HSN code for all goods and services consumed or rendered shall be required on all of their B2B invoices in this class of taxpayers.

The 4-digit HSN code on the B2C invoices to these taxpayers is however optional.

The financial year to calculate annual total turnover is 2020-2021 for the two classes of taxpayers.

This amendment will take effect on 1 April 2021.

How pharma company will help you with e-invoice?

It is almost impractical for us to manually keep a list of and invoices. To improve the vendor invoice administration system, we are creating RPA, in which the invoice is scanned through OCR, translated into SAP documents, and then completed by the approval method. The processing of the data can only be further processed if it is accepted by the specified laws. If any uncertainty exists and the requirements do not meet, manual action may be required. This makes it efficient for Accounts Payable functionaries to handle the invoice in a less time-consuming manner. This method greatly reduces the production period.

How a medical representative helps a PCD Pharma Company/Franchise?

Daily calls begin a day of MR. He's reviewing his day chart. He pitches the sample and the substance while meeting the customer i.e. the doctors. The selling will be made according to how the call goes. When done, MR was expected to sit down at the portal earlier and log all its meetings. Perhaps, after the conference, he forgot everything that happened, so he did not apply it. Now we have fitted our MR with a tablet that has a built-in application with the digital image.

GST Rate on Sale of Scrap Materials with HSN Code +91-7206070155

Nothing in connection with GST Laws has been in Scrap. Only in a typical pcd pharma business model may his significance be found. However, as mentioned in the dictionary scrap, “waste that either has no economic value or is only recoverable by recycling in terms of the value of its raw material quality.” The scrap must not be tested and passed into the production or the mechanical phase in terms of the GST regime.

The scrap is tax provision following GST standards; both the essence of scrap and HSN code have determined its levels of GST. The tax collected from the source of the income tax regulation 1961 shall not be used in calculating the amount of the supply or GST. It should be administered at value inclusive of GST by TCS U/s 206(C)(1) of the Revenue Tax Act, 1961.

The job is boring but it is not contentious to find tax potential in garbage and scrap. The highest GST percentage in the scrap material is 18%.

Scrap dealers on strike against GST dept

The GST department has been faced with an indefinite strike by Mandi Gobindgarh’s Iron Scrap Traders Association to fix an error between the department and the false body.

The GST department has been faced with an indefinite strike by Mandi Gobindgarh’s Iron Scrap Traders Association to fix an error between the department and the furnaces.

The president has warned of a large strike by shutting operations because the GST department does not come up with a response.

GST rate on scrap materials with HSN code

HSN Code	Description	GST Rate
3915	Plastic waste, parings or scrap	5%
4004	Rubber waste, parings or scrap	5%
4017 00 20	Hard Rubber waste or scrap	5%
4401	Wood Scrap	5%
4415	Packing cases, Box, Crates, Drums	5%
4707	Paper waste or scrap	5%
7001	Cullet or other waste or scrap of Glass	5%
2524	Asbestos waste	5%
7112	Waste and scrap of precious metal	3%
3006	Pharmaceutical Waste (except Contraceptives)	12%
3825	Municipal waste, sewage sludge, clinical waste	0%
2621	Slag Ash Waste	18%
7204	Vehicle Scrap	18%
7204	MS Scrap of all types	18%
7204	Scrap US Rail	18%
7404	Copper Waste Scrap	18%
7408	Bronze Waste Scrap	18%
7503	Nickel Waste Scrap	18%
7602	Aluminium Waste Scrap	18%
7902	Zinc Waste Scrap	18%
8002	Tin Waste & Scrap	18%
8113	Cermets and articles thereof waste and scrap	18%
85	E-Waste	5%
8548	Waste and scrap of primary Cells primary batteries and electric accumulators	18%

Note:

• E-waste means the list of planned electrical and electronic devices. GSR 338 (E), which includes accessories, consumables, parts, and spares for the service of the goods, is included in the Indian Gazette dated 23 March 2016.

The HSN code has not been told yet for a large amount of scrap. Because of the standard method, the HSN code for a scrap object cannot be found in a residual entry 453 of Type III of the communication No.1/2017-Central Tax Tax Rate dated 28 June

HSN and GST on Medicines and Medical Supplies in India +91-7206070155

The tax is imposed on goods and services in India at four None, 5%, 12%, and 18% on drugs and medical supplies. In India, the tax is imposed. Blood and its by-products and all contraception products shall be paid for the NIL rate. Life-saving medications such as vaccines and treatments such as tuberculosis, AIDS, diabetes, and malaria, are paying at the lowest 5% GST. Only medical goods, including nicotine gums that contain nicotine polacrilex, have the highest GST levels at 18%. Although GST will be paid at the rate of 28% on many other GST goods and facilities, no medications or medical supplies will be charged.

CAIT Asks Attention on Online e-Pharmacy

The CAIT has once again sought to understand what damage the internet sale of chemists and pharmaceutical stores is doing. The CAIT requested the Piyush Honorable Trade Minister to find online e-commerce websites which do pharmaceuticals online and offer retailers tough competition. Big discounts are very dangerous for manufacturers and this must be closely observed on the grounds of chemists' health.

1 . NIL Rate of GST on Medicines and other Medical Supplies

• Human blood and medicinal ingredients
• All kinds of contraception products

2. 5% Rate of GST on Medicines and other Medical Supplies

GST charges 5 percent for products and medical supplies are:-.

• Human/animal blood vaccines
• Oral rehydration salts
• Diagnostic kits for detecting all types of hepatitis
• Cyclosporin
• Formulations manufactured from bulk drugs specified in List 2 of central excise notification 12/2012
• Artificial limbs, wheelchairs, crutches, walking frames, etc.
• Insulin
• Ayurvedic, Siddha, Unani, Homeopathic or Bio-chemic medicines manufactured following formulations prescribed inappropriate pharmacopeia/ First Schedule of the Drugs and Cosmetics Act, 1940.
• Artificial kidneys as well as disposable micro barriers/sterilized dialyzers of artificial kidneys
• Medicaments (inclusive of veterinary medicines) used in the biochemical medical system
• Deferiprone or Deferoxamine injection
• Medicines or drugs as well as their esters and salts as well as diagnostic test kits (specified in List 1 of central excise notification 12/2012)
• Coronary stents/stent systems for use with cardiac catheters

Instead of those mentioned in the list, several other medicines and supplies are paid for GST at 5 percent.

3.  12% Rate of GST on Medicines and other Medical Supplies

GST charges at 12 percent of products and medical equipment are:

• Dried or powdered organ-therapeutic or dried glans (includes extracts of the glans) and other tissues, including organic extracts.
• Animal blood prepared for diagnostics, treatment, and preventive treatment
• Animal blood fractions including anti-anemia and other blood fractions, along with associated immunological drugs ·
• Heparin and multiple sales for heparin
• Human/animal agents used for prophylactic or medicinal purposes
• Toxins, cultures of microorganisms (excluding yeasts), and similar products for medical use
• Toothpowder
• Therapeutic/prophylactic products consisting of two or three parts, which are both packaged for retail sales and not packed for retail sales, for Ayurvedic, Unani and Bio-chemical.
• Bandages, wadding, gauges, and similar items for operation, veterinary, dental, or medical purposes, including dressings, poultices, and adhesion plaster
• Sterile chirurgical/dental products, sterile adhering material, sterile tissue adhesives for the surgical wound shed sterile luminaires, and sterile surgical/dental adhesives.
• Diabetic foods, blood glucose monitoring system (glucometer), and test strips
• Atrial septal defect occlusion device/Patent Ductus Arteriosus
• Medical grade oxygen, hydrogen peroxide, etc.
• Photographic film/plates for use in medical use X-rays

Many other medicines and supplies are charged GST at the rate of 12% instead of those stated in the list.

4. 18% Rate of GST on Medicines and other Medical Supplies

GST paid at the cost of 18% for medical services and products:

• Polacrilex nicotine rubber
• Dental/oral care preparations in individual store packaging from toothing powders and fixing pastes, dental flooring, etc (excluding toothpowder)
• Different products for hair care (excluding mehndi paste in cones)
• Furniture such as hospital beds, surgical, medicinal, or veterinary surgery, operating tables, exam tables, etc.

Instead of those listed in the list, several other medicines and supplies receive 18% of GST.

NIL GST on Medical Services

The GST act of 2017 includes all regulations on human and veterinary health care (animals), which state that Zero prices for GST are costing the services of a general doctor, a licensed medical facility, or a paramedical clinic and that the emergency services for the carriage of patients are applied for. In veterinary care and facilities, the same rate applies.

NIL GST on Hospitalisation

The Advance Ruling Authority (AAR) in Kerala ordered that GST be liable at the percentage rate of NIL at the time that an individual is hospitalized, for medicinal products and medical care, implants, and related other activities. The AAR claimed that the Null rate would apply as these medications and supplies are part of the hospital health service. This decision applies throughout the country to all hospitals and clinics.

Impact of GST on Medicines and Medical Supplies

With the implementation of GST in Value Added Tax (VAT), a cascade in the manufacture and supply of medicinal products and medical services of all sorts has been eliminated. The GST is levied on medicinal products such that costs remain in most cases unchanged. The excise duty is abolished on diet items, and duties for the good of consumers are lowered.

The PCD Pharma Manufacturing companies had to store the supplies at a rate of 2 percent, as the intergovernmental supplies paid VAT, but since the implementation of GST the storage prices have been lowered, since the input tax loan has been issued and the GST rate has been the same in all states. That's GST's biggest influence.

Impact of New HSN Rule and GST on Pharmaceuticals +91-7206070155

GST: Goods &Services Tax Law in India is an absolute, multi-stage, residential tax imposed on any additional fee. In other words, tax on the supply of goods and services is an indirect tax. GST legislation has substituted many of India’s previous indirect tax laws

The tax was applied on 1 July 2017, when Prime Minister Narendra Modi introduced 101 changes to the Indian Constitution.

GST A meandering tax system that requires, through the sale, output, and usage of goods and services, financial credit expenditure produced on a national basis, mainly in firms, industries, and services. The primary aim is to abolish state and central government tax levies. Three phases are involved:

1. State GST (SGST) levied by state
2. Central GST (CGST) levied by center
3. Integrated GST (IGST) levied by the central government on inter-state supply of goods and service

Drug Price Control Order (Dpco)

The Essential Commodities Act provides a Drug Price Check to ensure that the prices of vital pharmaceutical goods which are insignificant quantities demanded are measured in a manner that is fairly priced for each user. It was in 1970 that the government understood that pharmaceutical goods and corporations made the sick results of high profitability

Calculation of Retail Price of Formulation

Before GST: In compliance with the following formula, the retail price of a formula shall be determined by the state:

R.P. = (M.C. + C.C. + P.M. + P.C.) x (1 + MAPE/100) + ED

After GST:

GST = (MRP)/ (1 + (GST %/100)) or GST= (MRP x 100) / (100 + GST %)

The government shall, in compliance with this method, measure the retail price of a formula after GST

GST Rate for Medicines

At its meeting held on 3 June 2017, the GST Council on medicinal products was agreed upon. GST is collected in 5 separate rates, namely Zero, 5%, 12%, 18%, and 28% based on the Article’s HSN code. The 37th Chapter of the HSN Code classifies drugs and pharmaceuticals.

Nil GST Rate Medicines

GST-free is the following medical products and prescription products:

• Human Blood and its components
• All types of contraceptives

5% GST Rate

In the following groups of HSN, goods will be charged at the GST rate of 5%:

• Animal or Human Blood Vaccines
• Diagnostic kits for detection of all types of hepatitis
• Desferrioxamine injection or deferiprone
• Cyclosporin
• Medicaments (including veterinary medicaments) used in bio-chemic systems and not bearing a brand name
• Oral rehydration salts
• Drugs or medicines including their salts and esters and diagnostic test kits
• Formulations manufactured from the bulk drugs

12% GST Rate

The following types of medicinal products and pharmaceutical products are taxed at a GST rate of 12%:

• Organs for organo-therapeutic uses;
• extracts of glands or other organs or their secretions for organo-therapeutic uses;
• heparin and its salts; other human or animal substances prepared for therapeutic or prophylactic uses, not elsewhere specified or included
• Animal blood prepared for curative, prophylactic, or diagnostic uses;
• antisera and other blood fractions and customized immunological products, whether or not obtained employing biotechnological processes;
• Toxins, cultures of microorganisms (not including yeasts), and similar products.
• Medicaments consisting of two or more constituents, who have been mixed for therapeutic or prophylactic uses, not put up in measured doses or forms or packings for retail sale, including Ayurvedic, Unani, Siddha, homeopathic or Bio-chemic systems medicaments.
• Medicaments consisting of mixed or unmixed products for curative or prophylactic uses put up in measured doses (as well as those in the form of transdermal administration systems) or forms or packings for retail sale, including Ayurvedic, Unani, homeopathic Siddha or Biochemic systems medicaments, put up for retail sale.
• Wadding, gauze, bandages, and similar goods (for example, dressings, adhesive plasters, poultices), impregnated or layered with pharmaceutical substances, or put up in forms or packings for retail sale for medical, surgical, dental, or veterinary purposes.
• Pharmaceutical goods such as Sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical cut closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics; sterile surgical or dental adhesion barriers, whether or nonabsorbable, etc.
• Waste pharmaceuticals.

18% GST Rate

The other prescription or drug product levied at 18% GST is Nicotine polacrilex gum. No 28% GST was charged for pharmaceuticals or medicinal products. Hence, the maximum applicable GST rate for medicines is 18%.

HSN Code and GST Rate for Pharmaceuticals and Medicines

The HSN is an 8-digit code that identifies the effective rate of GST for various products according to the GST regulations. HSN is the harmonized system of nomenclature. Where an enterprise has revenue up to INR 5 in the preceding financial year, the HSN code is required when providing invoices for up to four digits. If an organization has earnings above 5 Cr then the 6-digit HSN code is required for the invoice provisioning of products.

Advantages of Owning General Products Pharma Franchise in India +91–7206070155

 

Recent times have seen the pharma industry rise massively. There is a very high demand for reliable and efficient goods worldwide and in India. As a consequence, occupations such as pharma marketers are well-growing, and dealers are pretty profitable. For many, there are several benefits of having a pharma franchise as the best career opportunity.

Pharma Franchise company offers you a chance to work without pressure and offers you great opportunities to start your own PCD Pharma Franchise. The Indian industry should be in the top three pharma markets in the world by 2021. By 2021, it should be the same year. Thus, as the pharma company and the pharma market are increasing, the pharma franchise too will gain the benefits. It is seen as the foundation for the pharma sector. Here you know the benefits of running a pharma franchise.

Advantages of Owning a PCD Pharma Franchise

The franchise pharma industry is gaining great prominence in this region. Because of many factors, the pharma company has a lot to gain by investing in pharma specialists in this industry. The government also supports the pharma franchise, so that the growing need for quality pharma drugs at reasonable rates can easily be met. Investment in the pharma franchise market has many benefits and these are as follows.

Low Investment with Low risk

Unlike other companies, one of the great benefits of having a pharma franchise is a low risk. The Pharma Franchise is not as massive as other companies. If you don’t have enough money to set up your enterprise, so you’re the perfect option for the PCD Pharma Franchise. The risk involved is very low due to lower money investments.

Get the Monopoly Rights

You experience the great advantages of proprietary privileges if you invest or own a pharma franchise company. For a specific sector or a particular district, you will profit from the full monopolies. The pharma franchise partner has the freedom to sell the drugs in its way. This gives you every chance to work yourself.

No Working Pressure

You may not face any strain, other benefits of investing in the pharma franchise company are. The pharma franchise company offers you a wonderful opportunity to work freely with you. You must not achieve the goals and like most pharma applications. You don’t have any obligation from anyone to complete the annual goals.

Huge Product Profile

You will dedicate yourself to the product profile and see the large product list of every pharma company. Investing in the right pharma franchise company would profit you from a broad product portfolio and allow your pharma company to obtain a wide variety of products and quality assurance. This is another benefit of the pharma company’s investment.

Choose the best company to get the advantages of owning Pharma Franchise

Only if this individual invests in the right pharma franchise business will you profit from the possession of a Pharma franchise. You’ll see the multiple choices for the pharma franchise on the market with the rise of the pharma industry. This makes it often hard for the customer to pick the correct pharma franchise company and thus, therefore, leads to the incorrect one. Here are a few points that can be useful for the pharma franchise:

ISO and WHO certifications

High-quality products matching the required quality standard

A huge stock of products, which helps you as a franchise to succeed

High level of dedication to quality goods for ordinary citizens

Conclusion

Pharma franchises have a very high reach and opportunities. You will make a successful career and launch a great pharma business by investing in the pharma company. Bioshine HealthCare the right choice if you are searching for the best business for the pharma franchise to spend your money.