GST Rate for Medicines

The GST Council in the meeting held on 3rd June 2017 ruled the GST rates for medicines in India. As per the council's decision, GST is levied under five different rates, namely NIL, 5%, 12%, 18% and 28% based on the

HSN code of the item. Medicines and pharmaceuticals are classified under the 37th chapter of the HSN Code. In this article, we look at the GST rate for medicines and the associated HSN code.

NIL Gst Rate Medicines

The following types of medicines and pharmaceutical products are exempt from GST:

Human Blood and its components
All types of contraceptives

5% GST Rate

Goods under the following HSN categories are taxed at 5% GST rate:

Animal or Human Blood Vaccines
Diagnostic kits for the detection of all types of hepatitis
Desferrioxamine injection or deferiprone
Cyclosporin
Medicaments (including veterinary medicaments) used in bio-chemic systems and not bearing a brand name
Oral rehydration salts
Drugs or medicines including their salts and esters and diagnostic test kits
Formulations manufactured from the bulk drugs

12% GST Rate

The following types of medicines and pharmaceutical products are taxed at 12% GST rate:

Organs for organo-therapeutic uses, dried, whether or not powdered; extracts of glands or other organs or of their secretions for organo-therapeutic uses; heparin and its salts; other human or animal substances prepared for therapeutic or prophylactic uses, not elsewhere specified or included
Animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes; toxins, cultures of microorganisms (excluding yeasts) and similar products.
Medicaments consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale, including Ayurvedic, Unani, Siddha, homoeopathic or Bio-chemic systems medicaments.
Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale, including Ayurvedic, Unani, homoeopathic Siddha or Biochemic systems medicaments, put up for retail sale.
Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes.
Pharmaceutical goods such as Sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics; sterile surgical or dental adhesion barriers, whether or not absorbable, etc.,
Waste pharmaceuticals

18% GST Rate

Nicotine polacrilex gum is the only medicine or pharmaceutical product taxed at 18% GST rate. No pharmaceutical or medicines have been taxed at 28% GST. Hence, the highest applicable GST rate for medicines is 18%. 1

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Frequently Asked Questions

Common questions about GST Rate for Medicines in India: Comprehensive Overview.

Human blood and its components are exempt from GST, meaning they are taxed at a NIL rate.

All types of contraceptives are exempt from GST and are taxed at a NIL rate.

Yes, animal or human blood vaccines are taxed at a GST rate of 5%.

Diagnostic kits for the detection of all types of hepatitis are taxed at a GST rate of 5%.

No, Ayurvedic, Unani, Siddha, homoeopathic, or Bio-chemic systems medicaments are taxed at the same GST rates as other medicines, depending on their specific category.

The highest GST rate applicable to medicines is 18%, which is levied on nicotine polacrilex gum. No pharmaceutical or medicine is taxed at the 28% GST rate.

Medicaments (including veterinary medicaments) used in bio-chemic systems and not bearing a brand name are taxed at a GST rate of 5%. However, branded medicines may be taxed at a higher rate, depending on their specific category.

Sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns), and sterile tissue adhesives for surgical wound closure are taxed at a GST rate of 12%.

Yes, waste pharmaceuticals are taxed at a GST rate of 12%.

Organs for organo-therapeutic uses, dried, whether or not powdered, as well as extracts of glands or other organs or their secretions for organo-therapeutic uses, are taxed at a GST rate of 12%.