GST on Medicines 2026 — Pharmaceutical Rates, Medical Devices & Healthcare Exemptions

Updated: 3 June 2026 | CGST Act | GST Council Notifications | Incl. Ayurvedic, Devices & Hospital Rules

GST on medicines and pharmaceuticals by category: Life-saving drugs (insulin, oral rehydration salts, vaccines): 5%. Most medicines (tablets, capsules, syrups, injections): 12%. Ayurvedic medicines: 12% (branded) or 0% (traditional/classical, unbranded). Diagnostic kits & syringes: 5–12%. Hospital services (consultation, surgery, hospitalisation): 0% (exempt). Blood and blood products: 0% (exempt). Contraceptives: 0% (exempt). Sanitary napkins: 0% (reduced from 12% in July 2018).

Hospital services exempt from GST — 0% on healthcare, surgery & consultation
OPD, IPD, ICU, ambulance, and diagnostic services by clinical establishments are fully GST-exempt.

GST Rates on Medicines & Medical Products — Full Table

Category / Product	Examples	GST Rate	Notes
Vaccines (all types)	COVID, BCG, Polio, Hepatitis, MMR	5%	Life-saving category
Insulin	Human insulin (all forms)	5%	Essential medicine
Oral rehydration salts (ORS)	Electral, Electrobion	5%	—
Diagnostic kits	HIV kits, diabetes test kits	5%	IVD diagnostic kits
Syringes & needles	Disposable syringes, IV sets	5%	—
Regular medicines	Paracetamol, antibiotics, antifungals	12%	Majority of pharma products
Tablets & capsules	All formulations under Schedule H	12%	Prescription drugs
Syrups & oral liquids	Cough syrup, antacids, vitamins	12%	—
Branded Ayurvedic medicines	Patanjali, Dabur, Himalaya products	12%	Sold under brand name
Classical Ayurvedic (unbranded)	Traditional preparations	0%	No brand, pharmacy-compounded
Blood & blood products	Whole blood, plasma, platelets	0% (Exempt)	—
Contraceptives	Condoms, contraceptive pills	0% (Exempt)	—
Sanitary napkins	All brands, all sizes	0% (Exempt)	Rate reduced July 2018
BP monitors / glucometers	Omron BP, Accu-Chek	12%	Home diagnostic devices
Hearing aids	All brands, all types	5%	Assistive device
Wheelchairs & crutches	Manual/electric wheelchairs	5%	Orthopaedic aids
Hospital services (all types)	Surgery, OPD, ICU, consultation	0% (Exempt)	No GST on healthcare services
Diagnostic services	Blood test, MRI, X-ray, ultrasound	0% (Exempt)	By clinical establishments
Ambulance services	Emergency, transport to hospital	0% (Exempt)	—
Cosmetic surgery	Rhinoplasty, liposuction (elective)	18%	Not medically necessary

Why Hospital Services Are GST-Exempt

Under Notification No. 12/2017 — Central Tax (Rate), healthcare services supplied by a clinical establishment, an authorised medical practitioner, or a paramedic are fully exempt from GST. The rationale is that healthcare is a basic necessity and taxing hospital services would directly burden patients, particularly those with serious illnesses.

This exemption means hospitals cannot claim Input Tax Credit on their purchases (medicines, equipment, construction) since they are making exempt supplies. However, to prevent the cascading effect on patients, the government keeps medicine and medical device GST rates low (5–12%) so the embedded cost remains manageable.

GST on Medicines — Key Points for Businesses & Pharmacies

Retail pharmacies and medical stores are registered under GST and must charge GST on the sale of medicines as applicable (5% or 12%). They can claim ITC on their purchases from wholesalers/distributors. Medical representatives (MRs) and pharma companies supplying free samples must reverse ITC under Section 17(5)(h) — free samples are a blocked credit situation. Hospitals purchasing medicines for in-patient treatment (part of the composite health service) do not charge GST on the medicines dispensed to admitted patients, as it is bundled with the exempt healthcare service.

Frequently Asked Questions

What is the GST rate on COVID medicines and vaccines?

COVID-19 vaccines attract 5% GST. During the pandemic peak (May–Sep 2021), the GST Council temporarily reduced rates on several COVID relief medicines and equipment. Key COVID medicines: Remdesivir, Tocilizumab, and anti-coagulants were reduced to 5% during 2021. Black fungus (mucormycosis) medicines like Amphotericin-B: 5%. As of 2025, vaccines (all types including COVID, polio, BCG, hepatitis) continue to attract 5% GST. Medical oxygen and oxygen concentrators for personal use were also reduced to 5% in 2021.

Is hospital treatment GST free?

Yes, healthcare services provided by hospitals, clinics, and medical practitioners are entirely exempt from GST (0%). This includes: consultation and OPD charges, hospitalisation and inpatient treatment, surgical procedures, ICU charges, diagnostic tests done within a hospital, and ambulance services. The exemption covers services by clinical establishments, authorised medical practitioners, and paramedics under Notification No. 12/2017 (Central Tax-Rate). However, non-medical services in hospitals like food (canteen), parking, and cosmetic/aesthetic surgery may attract GST.

What is GST on Ayurvedic and herbal medicines?

Ayurvedic and herbal medicines attract GST at two rates: (1) Branded Ayurvedic medicines (manufactured under AYUSH licence, sold under a brand name): 12% GST. (2) Traditional/classical Ayurvedic preparations (unbranded, not sold under a specific brand): 0% (exempt). Patanjali products, Dabur, Himalaya, and other branded Ayurvedic products attract 12% GST. Herbal teas, kadha, and similar products used for wellness (not medicinal purpose) may attract 5% as food items. The classification depends on whether the product is a licensed medicine or a food/wellness product.

What is the GST on medical devices like a BP machine or glucometer?

Medical devices and diagnostic equipment attract GST at the following rates: Blood pressure (BP) monitors: 12% GST. Glucometers (blood glucose monitors): 12% GST. Thermometers: 12% GST. Wheelchairs: 5% GST. Crutches and orthopedic aids: 5% GST. Hearing aids: 5% GST. Spectacles and lenses (corrective): 12% GST. Surgical instruments: 12% GST. MRI/CT scan machines (for hospitals): 12% GST. Glucometer test strips: 12% GST. Insulin pens and pen needles: 12% GST. Dialysis machines: 5% GST. The GST Council has generally kept life-saving equipment at lower rates.

Is GST charged on blood tests and diagnostic services?

Diagnostic services including blood tests, urine tests, X-rays, MRI, CT scans, ultrasounds, and ECG are exempt from GST (0%) when performed by a clinical establishment or authorised medical practitioner. This exemption covers standalone pathology labs, diagnostic centres, and hospital-based tests. However, if a diagnostic company is providing equipment or testing kits to hospitals (B2B supply of goods), those goods may attract GST at their applicable rates. The service of conducting the test (the diagnostic service itself) remains GST-exempt for the end patient.

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