1.Specific cases are mentioned under the GST law where no input tax credit shall be available for claims to the taxpayer.  ITC cannot be claimed if it is restricted in GSTR-2B available under Section 38 of the GST Act. Section 38 is completely revamped as ‘Communication of details of inward supplies and input tax credit’ in line with the Form GSTR-2B.

2. Since the implementation of GST, it has been clear that health care services provided by an authorised medical practitioner or para medics through a clinical establishment are exempt vide Notification No. 12/2017-Central tax (Rate) dated [deleted]. But there have been certain grey areas in health care services regarding the availability of Input Tax Credit ) on certain supplies that needed a crystal-clear approach to be a compliant taxpayer. 

Advance ruling aimed at determining whether ITC is required to be restricted on medicines supplied to three types of a person :

1) Supply of medicine to In-patients: ITC is required to be restricted on medicines used in the supply of health care services provided to admitted patients.

2. 

2) Supply of medicine to Out-patients: This kind of supply involves 2 transactions:

• Sale of medicine from the pharmacy counter of the applicant:
• Medicine forming a part of health care services

The ITC is required to be restricted on medicines that are consumed in the provision of health care service and the output is health care service only which is exempt from tax.

3. Supply of medicine to customers:The ITC is not required to be restricted on medicines supplied to a customer as there is no health care services provided and is liable to pay tax on the outward supply of medicines.

The medicines are used in course of furtherance of business as per section 16 and are not blocked credit under section 17(5) (g) , consequently the applicant is eligible for ITC on inward supply of medicines under section 16(1) subject to fulfillment of rules 36 to 45 of CGST Rules.

Company cannot claim input tax credit on medicines purchased in director name 

2) bill should be in name of company and director and not in name of director alone 

In India, Input Tax Credit (ITC) is governed by the Goods and Services Tax (GST) laws. When a business entity, such as your company, wants to claim ITC on purchases, certain conditions must be met:

Recipient of Goods or Services: ITC can only be claimed by the registered recipient of goods or services. In your case, the company is the intended recipient.

Tax Invoice in the Name of the Registered Entity: The tax invoice for the purchased goods or services should be in the name of the registered entity that intends to claim the ITC. In your case, the tax invoices should be in the name of the company, not in the Director's name.

Compliance with GST Law: The company should be registered under GST and should be in compliance with GST law.

Based on these conditions, it is typically not possible to claim ITC on purchases made under the license held in the Director's name. The ITC can generally only be claimed if the tax invoices are issued in the name of the registered company. This is to prevent misuse and ensure that the ITC is appropriately accounted for.

To claim ITC and conduct business under the company's umbrella, you should consider the following steps:

Transfer Ownership: Consider transferring the ownership of the drug store license from the Director's name to the company's name.

Reissue Invoices: Ensure that all invoices for medicines and purchases are issued in the name of the company, not the Director.

Registration under GST: If not already done, ensure that the company is registered under GST.

Maintain Proper Records: Keep accurate records of all transactions, invoices, and ITC claims for future tax assessments.

Yes it can be claimed