The Commercial Tax Department, Biharsharif Circle, has intensified its efforts to ensure compliance with Goods and Services Tax (GST) regulations in the pharmaceutical trade. The department is now closely monitoring businesses that are adjusting their entire tax liability through Input Tax Credit (ITC) and making minimal tax payments via cash ledger.

In this regard, a crucial review-cum-awareness meeting was held in a private auditorium in Biharsharif, attended by pharmaceutical traders, chartered accountants, tax consultants, and tax advocates. Chaired by State Tax Joint Commissioner Premchand Bharti, the meeting saw participation from approximately 100 drug dealers and tax experts.

Joint Commissioner Premchand Bharti stated that sector-wise data analysis of turnover, purchase-sale, ITC utilization, and cash tax payments is being conducted. He clarified that the compliance patterns of businesses relying solely on ITC to settle tax liabilities and making nominal cash tax payments are under intense scrutiny. He instructed businesses to regularly check their accounting records and honestly make cash payments when tax liabilities arise.

During the meeting, it was emphasized that tax payments under the Reverse Charge Mechanism (RCM) for rent of commercial premises must be made mandatorily from the cash ledger, and adjustment through ITC will not be valid under any circumstances. For expired, damaged, or returned medicines, accurate matching of stock and purchase records and ensuring ITC reversal as per rules were stressed. Furthermore, e-invoicing has been made mandatory for B2B supplies for businesses with an annual turnover exceeding ₹5 crore. They were advised to maintain their systems properly to avoid technical errors.

Officials stated that the objective of data-driven monitoring is to make the tax system transparent, not to harass anyone. Timely voluntary compliance will help businesses avoid unnecessary legal disputes and strengthen state revenue. State Tax Deputy Commissioner Pankaj Kumar Singh, State Tax Assistant Commissioners Richansha Riju and Saurabh Kumar, along with other department officials, were present at the meeting.