Pharma companies will be able to avail GST input tax credit (ITC) on free samples and on goods destroyed or written off upon expiry of shelf life from the next fiscal year. Rationalising ITC and Refund Reforms The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and her state counterparts, had on Thursday approved the proposal to rationalise ITC and refund reforms for the sector, a move which will support manufacturing, liquidity and exports and address several long-standing GST issues that pharmaceutical and life sciences businesses face. The changes in GST law and rules will become effective from the next fiscal year.