Tax on Medicine

Tax on Medicine
GST on Medicine in India

ndia’s GST council, in their meeting on 3rd June 2017 ruled new tax rates for medicines. As per the decision made by this grouping of ministers and advisors to Indian Prime Minister Narendra Modi (and many other cabinet members), there are five different categories under which a product can fall: from zero percent to 28%. These range from nothing at all up through 5%, 12%, 18% or even28%). The taxation rate is assigned based upon what HSN Code number appears when looking over an item’s label; 37th Chapter falls into one such classification with its own associated amount due accordingly

Exception from GST

All contraceptives and Human Blood and its components:

Human Blood has four main components: plasma, red blood cells, white blood cells, and platelets.These are all excepted from paying GST.

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
  • Animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions that are obtained from an animal.
  •  Organs for organo-therapeutic uses, dried or powdered; extracts of glands or other organs and their secretions used in the treatment and prevention of various conditions.
  •  The drugs that are not put up in measured doses or forms for retail sale include those from traditional medicines such as Ayurveda, Unani and Siddha. This includes homoeopathic systems too!
  •  These are the most popular types of medicinal products, which include medications that you can buy at your local pharmacy. These consists primarily out drugs in mixed or unmixed form for therapeutic use and also contain some prophylactic ingredients too!
  •  Wadding, gauze and bandages are all used for a variety of medical treatments. For example wound dressings act as an adhesive to stop the bleeding while plasters hold it in place until you can find someone who can remove them properly; poultices work by heating up plants or minerals that have medicinal properties such persuasive power!
  •  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 homeostatic; sterile surgical or dental adhesion barriers, whether or not absorbable, etc.,
18% GST Rate

The GST on nicotine polacrilex gum is 18%. There are no other medicines or pharmaceutical products taxed at 28%, so the highest applicable rate for these types of goods falls in this category -18%.

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