What is GST? GST Rates for Pharmaceutical Products?

What is GST?
GST stands for Goods and Service Tax which implements in India from July 1, 2017. It is form of indirect taxes levied by Indian Government. It will replace all other indirect taxes like cst/vat/tin/excise duty etc.

How to File Return under GST reforms?
How to generate e-way bill under GST?

GST Rates for Pharmaceutical Products and Ayurvedic Products

  1. NIL for Human Blood and its components
  2. NiL for All types of contraceptives
  3. 5% for Animal or Human Blood Vaccines
  4. 5% for Diagnostic kits for detection of all types of hepatitis
  5. 5% for Desferrioxamine injection or deferiprone
  6. 5% for Cyclosporin
  7. 5% for Medicaments (including veterinary medicaments) used in bio-chemic systems and not bearing a brand name
  8. 5% for Oral re-hydration salts
  9. 5% for Drugs or medicines including their salts and esters and diagnostic test kits, specified in List 3 or List 4 (See in the End of Article) appended to the notification No.12/2012- Customs, dated the 17th March, 2012, dated the 17th March, 2012
  10. 5% for Formulations manufactured from the bulk drugs specified in List 1 (See in the End of Article) of notification No.12/2012-Central Excise, dated the 17th March, 2012, dated the 17th March, 2012.
  11. 18% for Nicotine polacrilex gum.
  12. 12% All goods not specified elsewhere including  a) Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale, including Ayurvedic, Unani, Siddha, homoeopathic or Bio-chemic systems medicaments. b) Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale, including Ayurvedic, Unani, homoeopathic siddha or Biochemic systems medicaments, put up for retail sale. c) Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up. d) forms or packings for retail sale for medical, surgical, dental or veterinary purposes. e) Pharmaceutical goods specified in Note 4 to this Chapter 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 haemostatics; sterile surgical or denatal adhesion barriers, whether or not absorbable, etc., Waste pharmaceuticals [other than contraceptives]
  13. Few Nutraceticals, Food and Dietary Supplements come under 18% tax slab and Few come under 28% tax slab. Soya Protein preparation, Vitamins and Pro vitamin preparations, Enzymatic preparations, whey proteins etc come under 18% tax slab
  14. Unbranded Ayurvedic Medicines fall under 5% Tax Slab
Detail of Lists that may be beneficial for you to understand GST structure of Pharmaceutical products:
LIST 1

  1. Streptomycin
  2. Isoniazid
  3. Thiacetazone
  4. Ethambutol
  5. Sodium PAS
  6. Pyrazinamide
  7. Dapsone
  8. Clofazamine
  9. Tetracycline Hydrochloride
  10. Pilocarpine
  11. Hydrocortisone
  12. Idoxuridine
  13. Acetazolamide
  14. Atropine
  15. Homatroprn
  16. Chloroquine
  17. Amodiaquine
  18. Quinine
  19. Pyrimethamine
  20. Sulfamethopyrezine
  21. Diethyl Carbamazine
  22. Arteether or formulation of artemisinin.
LIST 2
  1. Meta Aminophenol
  2. Para Nitrochlorobenzene (PNCB)
  3. Picolines
  4. Novaldiamine
  5. Ethoxy methylene diethyl-malonate
  6. Hydrazine Hydrate
  7. DL-2 Amino-1 butanol
  8. Guanidine Nitrate
  9. Citric Acid
  10. 4,7-DCQ (Dichloroquinoline)
  11. N-methyl Piperazine
  12. D-2-Aminobutanol (O-Aminobutanol)
  13. Diethyl Carbamyl Chloride
  14. 4-Cyanopyridine
  15. Isonico-tinic acid
  16. Thiosemicarbazide
  17. 1-Nitropropane
  18. 4-Amino-4 Nitrodiphenyl sulphide
  19. N-(4-Chlorophenyl)-O-Phenylene diamine
  20. 5-Iodouracil (21) l-Acetyl-5-Iodouracil
  21. 2-Amino-5-Mercapto-1,2,4-Thiadiazole
  22. 2-Amino-5-Amino-Sulfomyl-l,3,4-Thiadiazole
  23. 2-Acetylamino-5-Mercapto-l,3,4 Thiadiazole
  24. Tetra Urea Complex.
LIST 3

  1. Insulin
  2. Lamivudine
  3. Ritonavir
  4. Saquinavir
  5. Zidovudine.
  6. Atazanavir
LIST 4

  1. Coconut husk crusher
  2. Coconut husk defibering mill
  3. Sifter or siever (for separating coir fibre from pith)
  4. Turbo cleaner (for cleaning the fibre)
  5. Bailing press
  6. Willowing machine (for cleaning and preparing fibre for spinning)
  7. Motorised spinning ratts.

Hope above information is useful to you…

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

10 Replies to “What is GST? GST Rates for Pharmaceutical Products?”

  1. Sir we are in process of opening a new pharma company , as we all know new rules have formed by govt, and also gst will also comes in operation soon..so i t is right time to start a bussiness?

    Ayush says:
  2. New rules and gst will be beneficial for all new entrepreneurs. After implementation of gst, this will take some time to understand the actual concept of gst. You have to wait for some time then. Now its the good time to start business because it will give you continuity in work after gst implementation also. Otherwise you have to wait for some time to understand tax structure.

    One more thing, only tax structure and way of invoicing may change by gst. Method of work and other things will be same irrespective of gst. We don't thing you should consider new policies or gst before starting business. You have to do business with proper manner then you don't need to think about any new policies.

    Pharma Franchise Help says:
  3. Dear Sir We are a siddha product Manufacturer with Siddha License .are we exempted from gst or is there a tax rate for us ?

    greenishindiacare says:
  4. Sidha medicines also have 12% tax equal to Ayurvedic Medicines

    Pharma Franchise Help says:
  5. What would be the Tax Structure (GST ) for
    1. Nutraceuticals
    2. Feed Suppliments
    3. Dietary Supplements

    Presently Pharma companies selling at 12.5 % to 15.00 %

    KOOLMEGHA says:
  6. very nice article. Thanks for sharing important info about GST in medicines in india. seems like bit complicated at early stage hope things gets fine with time.

    Averol says:
  7. Few Nutraceticals, Food and Dietary Supplements come under 18% tax slab and few come under 28% tax slab. Soya Protein preparation, Vitamins and Pro vitamin preparations, Enzymatic preparations, whey proteins etc come under 18% tax slab

    Pharma Franchise Help says:
  8. Sir , we are the ayurvrdic medicine manufacturer , gst will apply on mrp or trade value

    Ayurvedic Manufacturer says:
  9. @Ayurvedic Manufacturer

    GST will be apply at Trade value.

    And HSN code for ayurvedic medicines is 30039011

    Pharma Franchise Help says:

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