GST on Medicines & Pharmaceuticals in India (2026)
GST 2.0 (September 2025) moved nearly all medicines to a uniform 5% and made 36 life-saving drugs fully exempt. Here's the complete rate and HSN guide for pharmacies, chemists and pharma distributors.
Part of: The Complete GST Guide for Small Business in India (2026)
Medicines got simpler and cheaper under GST 2.0. From 22 September 2025, almost every medicine — allopathic, ayurvedic, homeopathic, Unani or Siddha — sits at a uniform 5%, and a list of 36 life-saving and critical drugs is fully exempt (0%). This guide covers the rates and HSN codes chemists and distributors bill against.
Quick answer: most medicines are 5% GST; 36 notified life-saving drugs are exempt (0%); medical devices are largely 5%.
Medicine GST rates at a glance
| Item | GST rate | HSN code |
|---|---|---|
| Most medicines (allopathic, AYUSH, OTC) | 5% | 3003 / 3004 |
| 36 notified life-saving / critical drugs | Nil (exempt) | 3003 / 3004 |
| Vaccines & diagnostic kits | 5% | 3002 / 3822 |
| Medical consumables (bandages, syringes) | 5% | 3005 / 9018 |
| Medical devices & equipment | 5% (most) | 9018–9022 |
What changed under GST 2.0
Earlier, medicines were spread across 5%, 12% and 18%. GST 2.0 collapsed almost everything into the 5% merit slab, cutting cost for patients, and exempted a defined set of life-saving drugs entirely. Pharmacies no longer juggle three slabs for their shelf.
FAQs
Are all medicines 5%?
Almost all. The exception is the 36 notified life-saving/critical drugs, which are exempt (0%). Confirm your specific product against the current notification.
General information only, not tax advice; the exempt-drug list and rates can be revised by the GST Council. Confirm the current rate and HSN for your exact product on CBIC notifications or with your CA. Last reviewed: September 2026.
Run your pharmacy on KukBook
KukBook keeps 5% vs exempt medicines apart automatically, tracks batch and expiry (FEFO), stores the right HSN per product, and prepares GST returns from your billing — with offline billing for the counter.
