Cannabis Duty and Information Return

Licenced cultivators, producers and packagers of cannabis products have to complete the B300 form for each calendar month reporting period and send the completed form to the Canada Revenue Agency no later than the last day of the month that follows the reporting period. The report contains details such as unpackaged inventory, packaged inventory, excise stamp inventory and total sales and duties payable by province and territory. The B300 report consists of the following sections. This article describes extraction reporting and does not cover cultivation reporting.

Unpackaged Inventory

For different types of unpackaged inventory, the opening inventory, additions to inventory, reductions to inventory, inventory adjustments, and closing inventory during the reporting period has to be entered in the report. All of the reported inventory would be broken down by type of unpackaged inventory. Flowering materials and pure intermediates should be reported in terms of kg of material. Any unpackaged finished inventory should be reported in terms of mg of Total THC.

Reporting in terms of mg of Total THC of unpackaged finished goods inventory:
The THC in mg per stock unit of any finished unpackaged product has to be recorded as part of the quality control process. This THC in mg per stock unit recorded during the quality control process should be used to calculate and report the mg of Total THC for the unpackaged finished inventory.

Reductions to Inventory

Sales Deliveries can be used to track and report quantities delivered inside and outside Canada. The unpackaged goods inventory that is used for manufacturing of packaged goods inventory should be tracked and reported under the following row:

  • Quantity packaged

The unpackaged goods inventory used for manufacturing of all other inventory should be tracked and reported under the following row:

  • Quantity used for further processing

If the user is able to configure the Bill of Material codes that need to be identified as Packaged inventory, it would be possible to track packaged inventory and other inventory separately. Different types of transactions are used in the system to record the following types of inventory:

  • Quantity incurred as drying or processing loss
  • Quantity destroyed
  • Quantity sent for analysis

Users should be given the ability to configure in the system the types of transactions that should be tracked under each of the above rows.

Packaged Inventory

For different types of packaged inventory, the opening inventory, additions to inventory, reductions to inventory, inventory adjustments, and closing inventory during the reporting period has to be entered in the report. For finished packed inventory, the above mentioned figures should be reported in terms of mg of THC. All of the reported inventory would be broken down by type of packaged inventory. Packaged Dried/Fresh Cannabis inventory should be reported in terms of kg of material. Packaged finished goods inventory should be reported in terms of mg of Total THC.

Reporting in terms of mg of Total THC of packaged finished goods inventory:
If users record THC in mg per stock unit during the quality control process of packaged cannabis inventory, this THC in mg per stock unit can be used to calculate and report the mg of Total THC for the unpackaged finished inventory. If users do not record THC in mg per stock unit during the quality control process of packaged cannabis inventory, the THC in mg per stock unit of the cannabis component used in the manufacturing of the packaged cannabis product can be used to calculate the mg of Total THC of packaged inventory. Production records of the packaged inventory would contain information such as how much of each component was used during packaged inventory manufacturing.

Excise Stamp Inventory

The opening inventory, stamps received, stamps used for products, stamps rendered unusable, stamps inventory adjustments, closing inventory during the reporting period should be entered in the report for each province and territory separately.

Calculation of Sales and Duty Payable

The sales made in each province or territory should be reported in terms of $, weight of material sold, and packages sold. The amounts of cannabis duty, additional cannabis duty, adjustment to additional cannabis duty should be reported by the province or territory for the sales made. The reported sales and duty payable should also be broken down by the type of finished goods sold. The total sales and duty payable should be summarized as well.

Summary

Even if there is nothing to report for a calendar month, the completed form needs to be sent by the deadline. In the next article, I will be discussing the solution developed by Panni for generating the B300 report in SAGE X3.

About the author

Balaguru Ganesan is a Project Manager with over 10 years of experience in consulting for Fortune 500 companies. His industry experience includes oil and gas, medical devices, telecommunications, and construction. He is a research and process-oriented professional with a keen eye for growth and efficiency improvement opportunities.

Transforming Businesses since 2009

For over a decade, Panni has helped companies transform their businesses to lead, innovate and be profitable. With the right combination of technology and experienced developers and consultants, we help companies with Change Management to achieve the organizational objectives. We believe in long-term relationships with our clients and provide top-notch support with fast turnaround times.
Panni Techdesk

Panni Techdesk

Transforming businesses since 2009

For over a decade, Panni has helped companies transform their businesses to lead, innovate and be profitable. With the right combination of technology and experienced developers and consultants, we help companies with Change Management to achieve the organizational objectives. We believe in long-term relationships with our clients and provide top-notch support with fast turnaround times.