ECHS will not Reject Your NA Medicine Claim for this Reason : Letter Issued

Claim for reimbursement on account of purchase of Non Available medicine by ECHS beneficiaries are being rejected showing some minor reason. According to the Govt of India rules and orders, Bills of medical store/ chemist having a turnover of less than Rs 40 Lakhs per number does not require GST registration. However, a lot of bills are being rejected by BPA for want of GST registration number on the bill.

As per CGST Act 2017 (GST Rule No 22) any business including a medical store requires a GST registration if the aggregate turnover of the business exceeds the threshold limit in a financial year as prescribed under GST Act. Under the GST Act any business supplying goods having a turnover beyond the threshold limit of Rs. 40 Lakhs for normal category states and Rs 20 Lakhs for special category states in a financial year must obtain GST registration.

So, it is clear that, GST registration is not mandatory if the shop does not meet the GST prescribed limit. But drug license will be mandatory for the bill. Any bills which have not been reimbursed/ rejected due to the earlier provisions a  waiver of the MD ECHS has been accorded uploading the bill again. ECHS has issued letter in this regard

Central Organisation ECHS
Adjutant Generals Branch
Integrated Headquarters Ministry of Defence (Army)
Thimayya Marg Near Gopinath Circle
Delhi Cantt -110010

B/49769/AG/ECHS                                                  17  May 2024

IHQ of MoD (Navy)/Dir ECHS (N)
DAV. Subroto ParkHQ Southem Command (A/ECHS)
HQ Eastern Command (A/ECHS)
HQ Western Command (A/ECHS)
HQ Northern Command (A/ECHS)
HQ Central Command (A/ECHS)
HQ South Western Command (A/ECHS)
All Regional Centres

INDIVIDUAL REIMBURSEMENT OF COST INCURRED BY BENEFICIARIES ON MEDICINE GST NO

1. Please refer followings:-

(a) CO ECHS letter No B/49762/AG/ECHS/medicine Policy dated 08 Apr 2019.

(b) CO ECHS letter No B/49778/AG/ECHS/Claim/Advisory dated 29 Dec 2023

2. The veterans are provided with NA certificate when the PC is not able to provide medicine either through SEMO or ALC. With this NA the veteran is able to purchase medicines from the market.

3. As per ECHS rules GST registration number and drug license number is mandatory requirement for processing of any pharmacy bills.

4. CO ECHS has been getting representation that bills of medical store/ chemist having a turnover of less than Rs 40 Lakhs per number does not require GST registration. Thus a lot of bills are being rejected by BPA for want of registration number.

5. As per CGST Act 2017 (GST Rule No 22) any business including a medical store requires a GST registration if the aggregate turnover of the business exceeds the threshold limit in a financial year as prescribed under GST Act. Under the GST Act any business supplying goods having a turnover beyond the threshold limit of Rs. 40 Lakhs for normal category states and Rs 20 Lakhs for special category states in a financial year must obtain GST registration.

6. Thus, GST registration is not mandatory if the shop does not meet the GST prescribed limit. But drug license will be mandatory for the bill.

7. Any bills which have not been reimbursed/ rejected due to the earlier provisions a  waiver of the MD ECHS is hereby accorded uploading the bill again.

This has the approval of MD ECHS.

                                                                                                     Col
                                                                                                     Dir (Med)
For MD ECHS

Ad

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top