GST on Medicines in India (2026): Medicine GST Rate, Drugs & Pharmaceutical HSN Code List & Ayurvedic Tax Slabs
A comprehensive, practitioner-reviewed reference guide for medical store owners, pharmacists, pharmaceutical distributors, and consumers on Goods and Services Tax (GST) rates, drugs and medicines HSN code classifications (Chapter 30), Ayurvedic medicine GST rate rules, cancer drug tax reductions, and pharmacy billing compliance.
- 5% Concessional Rate: Applies to most finished tablets, capsules, syrups, vaccines, and insulin under HSN 3004.
- 0% Exempt Category: Human blood, plasma, contraceptives, ORS, and notified rare disease medicines.
- Cancer Drug Relief: Major cancer drugs (Trastuzumab, Osimertinib, Durvalumab) reduced from 12% to 5% GST.
- 100% ITC for Chemists: Medical shops on Regular GST can claim input credit on all trade purchases and supplies.
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1. GST on Medicines in India (2026): 0%, 5%, 12% & 18% Tax Rate Slabs
Understanding the current GST on medicines in India is vital for medical store proprietors, healthcare facilities, distributors, and consumers alike. The GST Council has categorized all pharmaceuticals under specific tax brackets to keep life-saving treatments affordable while taxing non-therapeutic goods at standard rates. Whether determining the correct medicine gst rate for daily chronic prescriptions or calculating the general tax on medicine in India, the following statutory slabs apply:
Human blood & its components, All types of Contraceptives, Oral Rehydration Salts (ORS), Notified rare-disease medicines for personal import.
Prescription tablets, capsules, syrups, insulin, vaccines, life-saving cancer drugs (Trastuzumab, Osimertinib, Durvalumab), diagnostic test kits, branded Ayurvedic & Homeopathic medicines under HSN 3004.
Surgical rubber gloves, wadding, medical bandages, adhesive plasters, sterile catgut, medical grade oxygen, diagnostic reagents.
Dietary health supplements, multivitamin effervescent tablets, protein powders, medicated antiseptic soaps, herbal cosmetics.
2. Searchable Drugs and Medicines HSN Code & GST Rate Directory
Search over 24+ common pharmaceuticals, retail brand names, active ingredients, and AYUSH preparations to find the verified medicine hsn code and applicable medicine gst rate.
| Medicine & Brand Example | Type | HSN Code | GST Rate | Tax Classification & Invoicing Scope |
|---|---|---|---|---|
Paracetamol (Dolo 650, Crocin, Calpol) Analgesics & Antipyretics | Allopathic | 3004 90 99 | 5% | Finished retail medicine formulations of paracetamol in tablets, drops, or syrups. |
Amoxicillin + Potassium Clavulanate (Augmentin, Moxikind-CV) Antibiotics & Anti-Infectives | Allopathic | 3004 10 90 | 5% | Penicillin-class oral broad-spectrum antibiotic formulations. |
Azithromycin Tablets & Suspension (Azee 500, Zithromax) Antibiotics & Anti-Infectives | Allopathic | 3004 20 99 | 5% | Macrolide antibiotic formulations in retail strips or suspensions. |
Human Insulin & Analogues (Lantus, Mixtard, Novorapid) Diabetes & Endocrinology | Biological | 3004 31 10 | 5% | Insulin vials, cartridges, and pre-filled disposable pens. |
Metformin Hydrochloride (Glycomet, Glucophage) Diabetes & Endocrinology | Allopathic | 3004 90 99 | 5% | Standard first-line oral hypoglycemic tablets for Type-2 Diabetes. |
Pantoprazole & Omeprazole (Pan-D, Omez, Pantocid) Gastrointestinal & Antacids | Allopathic | 3004 90 99 | 5% | Proton Pump Inhibitors (PPIs) and gastro-resistant capsules. |
Atorvastatin & Rosuvastatin (Atorva, Rozavel) Cardiovascular & Statins | Allopathic | 3004 90 99 | 5% | Lipid-lowering prescription cardiovascular medicaments. |
Telmisartan & Amlodipine (Telma-H, Amlopres) Cardiovascular & Blood Pressure | Allopathic | 3004 90 99 | 5% | Anti-hypertensive arterial blood pressure management formulations. |
Trastuzumab Deruxtecan (Herceptin) Life-Saving Oncology | Biological | 3004 90 99 | 5% | HER2-positive breast cancer targeted therapy (GST reduced from 12% to 5%). |
Osimertinib (Tagrisso) Life-Saving Oncology | Allopathic | 3004 90 99 | 5% | EGFR-mutated non-small cell lung cancer tablets (GST reduced from 12% to 5%). |
Durvalumab (Imfinzi) Life-Saving Oncology | Biological | 3004 90 99 | 5% | Immunotherapy oncology intravenous infusion (GST reduced from 12% to 5%). |
Oral Rehydration Salts (ORS - WHO Formulation, Electral) Essential Electrolytes | Allopathic | 3004 90 99 | 0% (Exempt) | Life-saving electrolyte rehydration sachets completely exempt from GST. |
Human Blood, Plasma & Components Life-Saving Biologics | Biological | 3002 90 30 | 0% (Exempt) | Whole human blood, packed red blood cells, platelets, and frozen plasma. |
Contraceptives (Oral Pills, Copper-T, Condoms) Family Planning | Allopathic | 3006 60 10 | 0% (Exempt) | Chemical contraceptive formulations and mechanical barrier supplies. |
Human Vaccines (COVID-19, Polio, Hepatitis, Rabies) Immunological Biologics | Biological | 3002 20 19 | 5% | Preventive bacterial and viral human vaccines. |
Classical Ayurvedic Medicines (Chyawanprash, Asava, Arishta) Ayurvedic & AYUSH | Ayurvedic | 3004 90 11 | 5% | Manufactured under AYUSH Drug License (Form 25D) with authoritative classical texts. |
Proprietary Ayurvedic Medicines (Joint Pain Oils, Herbal Syrups) Ayurvedic & AYUSH | Ayurvedic | 3004 90 11 | 5% | Branded herbal medicines with therapeutic Drug License medicinal labeling. |
Herbal Health Supplements & Protein Powders Wellness & Nutrition | Supplement | 2106 90 99 | 18% | Nutritional protein powders and wellness tablets without drug license claims. |
Medicated Cosmetics & Anti-Dandruff Shampoos Dermatological Cosmetics | Supplement | 3304 / 3305 | 18% | Beauty lotions, skincare oils, and shampoos falling under cosmetic chapters. |
Homeopathic Dilutions, Globules & Mother Tinctures Homeopathic Medicines | Homeopathic | 3004 90 12 | 5% | Finished dilutions and potencies packed in retail bottles. |
Adhesive Bandages & Medicated Dressings (Band-Aid) First Aid & Dressings | Surgical | 3005 10 10 | 12% | Plaster-impregnated bandages, surgical dressings, and sterile gauze. |
Surgical Gloves & Sterile Catgut Sutures Surgical & Hospital Consumables | Surgical | 4015 / 3006 | 12% | Sterile rubber surgical gloves, absorbent sutures, and hospital drapes. |
Medical Grade Inhalation Oxygen (Cylinder & Liquid) Hospital Medical Gas | Allopathic | 2804 40 10 | 12% | Inhalation medicinal grade oxygen for intensive care and ambulance use. |
Blood Glucose Test Strips & Diagnostic Reagents Diagnostic Devices | Surgical | 3822 00 90 | 12% | Enzymatic test strips for glucometers, pregnancy detection cassettes, and lab reagents. |
3. Drugs and Medicines HSN Code Directory for GST (Chapter 30 & Consumables)
In the Goods and Services Tax framework, all medical formulations and therapeutic devices fall under HSN Chapter 30. Businesses must print accurate 4-digit, 6-digit, or 8-digit pharmaceutical hsn code details on every tax invoice to ensure seamless GSTR-1 e-invoicing and return reconciliation.
| HSN Code | Category Name | Description & Medical Scope | Applicable GST |
|---|---|---|---|
| 3001 | Glands and Other Organs (Dried / Extracts) | Extracts of glands or other organs or their secretions for organo-therapeutic uses, heparin and its salts. | 5% |
| 3002 | Human Blood, Vaccines & Toxins | Human blood, animal blood prepared for therapeutic use, antisera, vaccines, toxins, and micro-organism cultures. | 0% (Blood/Plasma) / 5% (Vaccines) |
| 3003 | Medicaments (Unmixed / Bulk Formulation) | Medicaments consisting of two or more constituents mixed together for therapeutic/prophylactic uses, not in measured doses. | 5% |
| 3004 | Medicaments (Finished Retail Formulations) | Finished tablets, capsules, syrups, injections, and ointments in measured doses or retail packings (Allopathic, Ayurvedic, Homeopathic). | 5% |
| 3005 | Wadding, Gauze, Bandages & Dressings | Adhesive dressings, medicated waddings, surgical bandages, poultices, and plaster-impregnated bandages. | 12% |
| 3006 | Pharmaceutical Goods & Diagnostic Reagents | Sterile surgical catgut, blood-grouping reagents, opacifying preparations for X-ray, dental cements, and first-aid boxes. | 12% |
| 2106 / 3304 | Health Supplements & Medicated Cosmetics | Protein powders, fortified energy drinks, cosmetic dermatological soaps, and wellness nutrition items. | 18% |
4. Latest GST Council Updates: Cancer Drugs & Rare Disease Tax Cuts
The GST Council made landmark announcements to reduce the financial burden on patients undergoing intensive chemotherapy and life-saving treatments, lowering tax from 12% to 5% GST across three critical oncology formulations:
HER2-Positive Breast Cancer
GST reduced from 12% to 5%, lowering critical vial treatment costs for thousands of oncology patients across India.
EGFR Non-Small Cell Lung Cancer
Targeted therapy tablet formulation reduced from 12% to 5% GST, ensuring substantial monthly savings on chronic therapy.
Immunotherapy Oncology Infusion
Concessional 5% GST applicable on imported and domestic vials under updated pharmaceutical classification schedules.
5. Ayurvedic Medicine GST Rate: 5% vs 18% Tax Rules for AYUSH Products
One of the most frequently queried topics among chemist shops and herbal retailers is the exact ayurvedic medicine gst rate. In India, the tax slab depends strictly on whether the product is an authorized medicament or an over-the-counter wellness cosmetic:
Classical & Proprietary AYUSH Medicaments
Ayurvedic medicines, classical preparations (Chyawanprash, Asava, Arishta), and branded herbal pain balms manufactured under an AYUSH Drug License (Form 25D) with therapeutic medicinal labeling attract 5% GST under HSN 3004 90 11.
Herbal Cosmetics & Nutrition Supplements
Herbal cosmetics, beauty skincare creams, hair oils, fortified nutrition powders, and energy health supplements sold without therapeutic drug approvals fall under HSN 2106 or 3304 and attract 18% GST.
6. Tax on Medicine in India: How GST is Calculated on Retail MRP vs Wholesale Invoices
The practical computation of tax on medicine in India differs fundamentally between consumer retail sales and B2B distributor transactions:
Under the Legal Metrology Act, medicine packaging prints the Maximum Retail Price (MRP) inclusive of all taxes. Retail pharmacies extract the taxable base value using the formula:
Example: For a 5% GST strip with MRP ₹105, the base taxable value is ₹100.00, with CGST of ₹2.50 and SGST of ₹2.50. The customer pays exactly ₹105.
Pharmaceutical manufacturers and C&F stockists invoice medical stores by quoting a net taxable base rate and adding GST on top:
The medical store can claim 100% of this GST as Input Tax Credit (ITC) to offset against their monthly sales liabilities in GSTR-3B.
7. Input Tax Credit (ITC) & Expired Stock Rules for Chemists (Section 17(5)(h))
Managing Input Tax Credit (ITC) correctly is crucial for pharmacy profitability. Pharmaceutical retailers face strict compliance rules regarding purchase credits and stock expiry:
Registered retail chemists can claim 100% ITC on GST paid on medicines, distributor bills, packaging material, refrigeration electricity, and store hardware (thermal printers, barcode scanners, POS systems).
Under Section 17(5)(h) of the CGST Act, if near-expiry medicine is destroyed or written off, the input tax credit previously availed must be reversed in Table 4(B) of GSTR-3B. To avoid tax loss, return expired stock to wholesalers using commercial credit notes.
8. Hospital Pharmacy GST Rules: In-Patient vs Retail Out-Patient
Medicines, implants, and injections administered to admitted hospital patients as part of care packages are treated as composite health care services and are 100% Exempt from GST. No ITC can be claimed by the hospital on these inputs.
Medicines sold across the counter to out-patients or walk-in customers are standard retail supplies, attracting 5% or 12% GST with full eligibility for Input Tax Credit.
9. Mandatory Fields for Pharmacy GST Invoices (Drugs & Cosmetics Act)
Unlike standard retail invoices, pharmaceutical tax invoices must comply with both the CGST Rules (Rule 46) and the Drugs & Cosmetics Rules:
Common Questions on GST on Medicines in India
Clear, practical answers for chemist shop owners, pharmacists, and taxpayers.
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