GST on Pharmaceutical Products — Medicines, Devices & Hospital Services
Updated: 3 June 2026 | CGST Act | HSN Chapter 30
Medicines: 5% GST (life-saving/insulin/vaccines) or 12% GST (most common medicines). Hospital treatment: EXEMPT. Medical devices: 5-12% GST. Pharmacy selling OTC medicines: 12% GST + ITC claimable. Sanitary napkins: Nil GST. Nutraceuticals/supplements: 18% GST.
12%
Most common medicines and pharmaceutical formulations: 12% GST (HSN Chapter 30).
Life-saving drugs (insulin, cancer, HIV, vaccines): 5% GST. Hospital treatment composite supply: exempt. Pharmacies can claim ITC; hospitals providing exempt services cannot.
Life-saving drugs (insulin, cancer, HIV, vaccines): 5% GST. Hospital treatment composite supply: exempt. Pharmacies can claim ITC; hospitals providing exempt services cannot.
Pharmaceutical GST Rate Chart
| Product Category | GST Rate | HSN |
|---|---|---|
| Insulin and anti-diabetics | 5% | Ch. 30 |
| Cancer drugs (most) | 5% | Ch. 30 |
| HIV/AIDS drugs | 5% | Ch. 30 |
| Vaccines | 5% | 3002 |
| Common medicines (antibiotics, paracetamol) | 12% | Ch. 30 |
| Ayurvedic/Unani medicines | 12% | 3004 |
| Hearing aids | 5% | 9021 |
| MRI/CT scan machines | 12% | 9018 |
| Sanitary napkins | Nil | 9619 |
| Protein supplements/nutraceuticals | 18% | 2106 |
Frequently Asked Questions
What is the GST rate on medicines and drugs in India?
GST on pharmaceutical products (medicines and drugs): Nil GST: human blood and its components, contraceptives. 5% GST: most life-saving drugs and medicines, including insulin, oral rehydration salts, vaccines, cancer drugs (many), HIV drugs, anti-malaria drugs, drugs for rare diseases. 12% GST: most common medicines and pharmaceutical formulations (paracetamol, antibiotics, cough syrups, vitamins, tonics, surgical dressings). 18% GST: some medical devices and pharmaceutical preparations not specifically classified at lower rates. Ayurvedic/Unani/Homeopathy medicines: 12% GST (same as allopathic). Veterinary medicines: 12% GST. Medical supplies (bandages, syringes): 5-12% GST. Important: GST classification based on HSN Chapter 30 (pharmaceutical products). The specific HSN code determines the rate — consult HSN lookup for exact product rates.
Is GST applicable on hospital-dispensed medicines?
Hospital medicines and treatment: when a patient receives treatment in a hospital, the entire healthcare service (including medicines given during treatment) is treated as a COMPOSITE SUPPLY of healthcare service. Healthcare service at hospitals, clinics, nursing homes: EXEMPT from GST. Medicines given as part of treatment: part of the exempt composite supply — NO GST. Pharmacy within hospital (selling to outpatients/OTC): NOT exempt — regular GST rates apply (5-12% on medicines). So: admitted patient getting IV drip, injections, tablets during treatment = no GST charged. OPD prescription fulfilled at hospital pharmacy = 12% GST on medicines. Surgery/procedure + medicines included in package = exempt. Ambulance service: exempt. Blood bank services: exempt. Diagnostic tests (MRI, X-ray) at hospital: exempt. Note: hospitals providing exempt services cannot claim ITC on their inputs.
What is the GST on medical devices and equipment?
Medical devices and equipment GST rates: 5% GST: wheelchairs, crutches, hearing aids, corrective spectacle lenses, contact lenses, artificial limbs, orthopedic devices. 12% GST: MRI machines, CT scan machines, X-ray machines, ultrasound machines, ECG machines, ventilators, dialysis machines, blood glucose monitors. 18% GST: general medical instruments (blood pressure monitors for home use, digital thermometers), some diagnostic kits. Nil: human blood and components, specific life-saving equipment by government notification. Surgical instruments (scalpel, forceps): 12% GST. Disposable medical supplies (gloves, masks, syringes): 5-12% GST. PPE kits: 5-12%. COVID-19 vaccines: 5% GST. Face masks: 5-12% depending on type. COVID test kits: 5% GST. ITC for hospitals: since healthcare is exempt, hospitals CANNOT claim ITC on medical equipment purchases — major cost implication.
Can pharmacies and medicine shops claim ITC on purchases?
ITC for pharmaceutical retailers and wholesalers: Registered pharmacies and medicine distributors selling medicines (taxable supplies at 5-12%) CAN claim ITC on: purchase of medicines from manufacturers/distributors, packaging materials, billing software, shop rent. ITC available on the GST paid (5-12%) on medicine purchases from registered suppliers. Requirement: supplier GST invoice + payment + invoice in GSTR-2B. Inverted duty structure: common in pharma — if input GST rate > output GST rate (e.g., buying at 12% and selling at 5%), eligible for refund of accumulated ITC. Pharmaceutical manufacturers: full ITC on raw materials, bulk drugs, machinery. Pharma companies exporting medicines: zero-rated with LUT — claim ITC refund. Hospital pharmacy (attached to exempt hospital): BLOCKED ITC — same as hospital. Standalone pharmacy selling to public: ELIGIBLE ITC.
What is the GST on nutraceuticals, supplements and cosmetics?
GST on health supplements and cosmetics: Nutritional supplements, health tonics, protein powders (food supplements): 18% GST. Ayurvedic health supplements (branded): 12% GST. Vitamins sold as pharmaceutical products (Ch. 30): 12% GST. Vitamins as food supplements (Ch. 21): 18% GST — classification dispute area. Cosmetics (shampoo, cream, lotion, face wash): 18% GST. Hair oil: 18% GST. Coconut oil in HDPE pack >1L: 5% GST (as edible oil). Coconut oil in small pack/bottle: 18% GST (as hair oil). Toothpaste: 18% GST. Soap: 18% GST. Sanitizer (hand sanitizer): 18% GST. Baby products: 18% GST (baby cream, shampoo). Baby food/milk powder: 5-12% GST. Diapers: 12% GST. Sanitary napkins: Nil GST (exempt from July 2018).
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