GST on Medicines – GST Rate on Medicines in India

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Introduction – Goods and Services Tax (GST) is the major concern in India these days. It is an individual tax which includes Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc. the GST was passed on March 29, 2017, and it came into effect on July 01, 2017. Here, we are about to discuss the different rates of GST on medicines.

remedial healthcare gst on medicines

Various Components of GST

There are four components or types of GST. The GST Council is responsible for deciding the rates mentioned with the mutual agreement of both the center and the state government.

  1. Central Goods & Services Tax (CGST) – Charged by Central Government
  2. State Goods & Services Tax (SGST) – Charged by State Government
  3. Integrated Goods & Services Tax (IGST) – Charged by the Central Government on the inter-state basis
  4. Union Territory Goods & Services Tax (UTGST) – Charged by Union Territories

After the presentation of GST rate on medicines and pharmaceuticals in India, it is further classified at four separate rates of Nil, 5%, 12%, and 18%. The nil GST on drugs is as of now just appropriate to human blood and its subsidiaries just as a wide range of contraceptives. The most astounding GST rate on medications for example 18% applies just to items containing nicotine polacrilex, for example, nicotine gum. The most minimal GST rate of 5% applies to pharmaceutical items assigned as “life-saving drugs” including oral rehydration salts, vaccines, and medicines. For further information, no pharmaceutical products are mentioned in the highest category of 28% GST rate.

GST on medicines in India

GST rate on medicines in India has settled accordingly so as everyone can avail them easily. Let’s find about out the four rates stepwise.

NIL GST RATE

  • Nil GST is human blood and its components
  • Nil GST is for all contraceptives

5% GST RATES

  • Animal or Human Blood vaccines
  • Cyclosporine
  • Diagnostics kits of hepatitis
  • Oral rehydration salts
  • Insulin
  • Medicaments without brand name used in biochemic systems
  • Deferiprone or desferrioxamine injection
  • Coronary stents/ systems used in cardiac catheters
  • Artificial limbs, wheelchairs, crutches, walking frames, etc
  • Artificial kidneys, disposable micro barriers, sterilized dialyzers of artificial kidneys
  • Ayurvedic, Siddha, Unani, Homeopathic or Bio-chemic medicaments
  • Medicines or drugs and their esters and salts plus diagnostic test kits

12% GST RATES

  • Glands (including gland extracts) and various organs (including organ extracts) dried or powdered for organo-therapeutic uses
  • Heparin and various heparin salts
  • Any human/animal substances used for prophylactic or therapeutic purposes
  • Animal blood prepared for diagnostic, therapeutic and prophylactic purposes
  • Animal blood fractions including antisera, other blood fractions, and related immunological products
  • Toxins, cultures of micro-organisms (excluding yeasts)
  • Toothpowder
  • Ayurvedic, Unani, Bio-chemic, Siddha or homeopathic medicaments for therapeutic/prophylactic use
  • Bandage, wadding, gauge, dressings, poultices and adhesive plasters for use in surgical, veterinarian, dental or medical procedures
  • Pharmaceutical products such as sterile surgical catgut, sterile absorbable surgical/dental yarns, sterile tissue adhesives for surgical wound closure, sterile luminaria, sterile luminaria tents, waste pharmaceuticals, etc.
  • Diabetic foods, blood glucose monitoring system (glucometer) and test strips
  • Atrial septal defect occlusion device/Patent Ductus Arteriousus
  • Medical grade oxygen, hydrogen peroxide, etc.
  • Photographic film/plates for use in medical use X-rays

18% GST Rates

  • Nicotine polacrilex gum
  • Preparations for dental/oral hygiene including denture powders and fixative pastes, dental floss, etc. in individual retail packaging (excluding toothpowder)
  • Various hair care products (excluding mehendi)
  • Dental, surgical, medical or veterinary furniture such as hospital beds, operating tables, examination tables, etc.

* Many other pharmaceutical products are not mentioned in the list. For more details about GST on medicines you can check our official page and concerned person for this.

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