Knowledge of GST on medicinal products and health supplies is essential, particularly in this time of coronavirus outbreak. On 3 June 2017, the GST Council agreed on the GST rates for medicinal products in India. As we all know, under Council decision 5%, 12%, 18%, 28%, and the GST is collected at five different rates, based on the HSN code of the goods. In addition, the HSN Code Chapter 37 classifies medications and drugs.
Therefore, the GST on Medicines and Medical Supplies in India is being read in this article.
Know about GST on Medicines
It should be noted that the NIL GST rate is levied on blood, by-products, and every contraceptive.
Similarly, for TB vaccinations and life-saving drugs, AIDS, diabetes, malaria, and so on have the lowest GST rate of 5 percent.
In addition, the maximum GST rate is just 18% in medicines such as nicotine gum including polacrilex. Finally, there is no GST tax rate of 28 percent for medicines or medical goods.
GST is, however, imposed at 28% for some other pharmaceutical products and services.
|
Medicines and Medical Supplies |
HS code |
GST on Medicines and Medical Supplies |
|
Animal/Human Blood Vaccines |
3002, 3006 |
5% |
|
Insulin |
30 |
5% |
|
Diagnostic kits for detection of hepatitis |
30 |
5% |
|
Desferrioxamine injection |
30 |
5% |
|
Cyclosporin |
30 |
5% |
|
Medicaments used in biochemical systems with no brand name |
30 |
5% |
|
Oral rehydration salts |
30 |
5% |
|
Drugs including salts and esters and diagnostic test kits, specified in List 1 of this Schedule. |
30 |
5% |
|
Medicines manufactured as per the formulae described in the authoritative books |
30 |
5% |
|
Formulations manufactured from the bulk drugs as specified in List 2. |
30 |
5% |
|
Nicotine polacrilex gum |
30 |
18% |
|
Below medicines:
|
30 |
12% |
|
All human/animal substances used for therapeutic purposes |
3002 |
12% |
|
Glands and various organs (dried or powdered) for organo-therapeutic uses |
3001 |
12% |
|
Bandage, wadding, gauge, and similar types of items |
3005 |
12% |
|
Pharmaceutical products such as sterile surgical catgut, sterile absorbable surgical/dental yarns, sterile tissue adhesives for surgical wound closure, etc. |
3006 |
12% |
|
Ayurvedic, Unani, Bio-chemic, Siddha or homeopathy medicines for therapeutic use |
3003,3004 |
12% |
To know more about GST on Medicines and Medical Supplies in India
If you want any other guidance related to GST Registration, please feel free to talk to our business advisors at 8881-069-069.
