Most pharma companies are likely to begin billing of products under GST rate. And chemist shops were largely issuing bills without GST number. But even they are registered themselves on network. In this article, you look at HSN code and GST rate for pharmaceuticals and medicines in India. Pharmaceutical products and medicines are classified under chapter 30 of HSN code. Read analysis on GST rate for medicines.
GST slab on Pharmaceutical products in India
Pharma industry is to come for GST rates. Their product is taxed under GST regime which is going to rollout. However, pharma sector rates have been limited to 12% category with only one product. And Nicotine polacrilex gum is taxed at 18 % rate of GST.
Majority of products fall under category of 5% and 12% along with zero-rate and exempt categories. Under GST regime, most medicine will be taxed at 12%. And essential drugs include insulin will be taxed at 5%.
In summary, this is broad structure of rates for pharmaceutical industry. Complete list of HSN Codes and Description for Pharmaceutical Products. Hence, check GST rates on cigarettes, Tobacco, cheroots, tobacco products
0%: Contraceptives
5%: Life-saving drugs
12%: General medicine
NIL GST rate Medicines
However, find below follow types of medicines and pharmaceutical products are exempt from GST.
Human Blood and its components – HSN code 3002
All types of contraceptives – HSN code 3006
5% GST rate
Goods under next HSN category are taxed at 5% GST rate.
Animal or Human Blood Vaccines – HSN code 3002 & 3006
Diagnostic kits for detection of all types of hepatitis
Desferrioxamine injection or deferiprone
Cyclosporin
Medicaments (include veterinary medicaments) used in bio-chemic systems and not bearing brand name
Oral re-hydration salts
Drugs or medicines include salts and diagnostic test kits, specific in List 3 or 4 append to notice No.12/2012- Customs, dated 17th March, 2012, dated 17th March, 2012.
Formulation affected from bulk drugs specific in List 1 of notice No.12/2012-Central Excise, dated 17th March, 2012, dated 17th March, 2012.
12% GST rate
All goods are not specific elsewhere. Below are follow types of medicines and pharmaceutical products are tax at 12% GST rate
HSN code 3001 – Glands and other organs for organo-therapeutic uses, dried, if not powder, extracts of glands or other organs or of their secretion for oregano-therapeutic uses, heparin. And salts, other human or animal substances prepare for therapeutic or prophylactic uses. Not elsewhere specified.
HSN code 3002 – Animal blood set for therapeutic, prophylactic or diagnostic uses, antisera and other blood fractions. It modify immunological products are not obtain by means of biotechnological processes. Like toxins, cultures of micro- organisms (exclude yeasts) and similar products
HSN code 3003 – Medicament consist of two or more part which have been mixed together for therapeutic or prophylactic uses, not put up in careful doses or in forms or packing for retail sale, include Ayurvaedic, Unani, Siddha, homoeopathic or Bio-chemic systems medicaments.
HSN code 3004- Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) 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 for retail sale, contains Ayurvaedic, Unani, homoeopathic siddha or Bio- chemic systems medicaments, put up for retail sale.
HSN code 3005 – Wadding, gauze, bandages and similar articles (for example, dressing, adhesive plasters, poultices), impregnate or coated with pharmaceutical substance. Like packings for retail sale for medical, surgical, dental or veterinary purposes.
HSN code 3006 – Pharmaceutical goods specified in Note 4 to this Chapter such as sterile surgical catgut, similar sterile suture materials. And sterile tissue adhesives for surgical wound closure, sterile laminaria and sterile laminaria tents, sterile absorbable surgical or dental haemostatics, sterile surgical or denatal adhesion barriers, whether or not absorbable, etc., Waste pharmaceuticals [other than contraceptives].
18% GST rate
Nicotine polacrilex gum is only medicine or pharmaceutical product taxed at 18% GST rate. Therefore no pharmaceutical or medicines have been taxed at 28% GST. Hence highest applicable GST rate for medicines is 18%. You can also see List of HSN code under GST in India
Finally, see HSN code for medicine in India. Probably, check GST rate for medicine. But to know more details check HSN code for medical supplies. In addition, check GST rate for ayurvedic medicines. Hence, you can see HSN and GST rate of drugs. Check HSN code list for pharmaceutical products in GST