GST On Medicines: Rates, HSN Code, Impacts & Calculation

Learn about GST rates on medicines in India, from 0% to 12%, covering essential drugs, Ayurvedic treatments, and their impact on pricing and the healthcare sector.

Understanding how Goods and Services Tax (GST) applies to medicines in India is essential for manufacturers, retailers, and even patients. With rates ranging from 0% to 12%, GST directly impacts the cost of generic drugs, branded medicines, Ayurvedic treatments, and life-saving drugs. Medicines are classified under various HSN codes like 3003 and 3004, which determine their tax slab and eligibility for input tax credit. While essential medicines are often exempted from GST, others may fall under the 5% or 12% bracket.