GST on Medicines and Medical Supplies in India

Know the GST Rate on Medicines and Medical Supplies

The government of India has set the rate of GST on medical equipment, GST on medicine, medical supplies and GST on medical services depending upon the nature and necessity of the same. Currently, the medicine GST rate is 12% and essential medicines attract a lower GST rate of 5%, and some medical devices are exempt from GST. There are 4 slab rates of GST on medicine and medical supplies that we will discuss in this article. Here, we also learn  how to calculate GST on medicine

Nil GST Rate on Medical Supplies

Currently, there are only 3 types of medicine and medical supplies that attract Nil GST rate and they are:

• Human blood

• Every contraceptive products

• Human blood components used in medicine

5% GST Slab Rate on Medicines and Medical Supplies

Here is the list of medicine and medical supplies that falls under this GST slab rate, see the GST for medical equipment :

1. Blood vaccines for humans and animals

2. All types of hepatitis diagnostic kits

3. Cyclosporine

4. Oral rehydration salts

5. Insulin

6. Generic medicaments including veterinary medicines used in a bio-chemic medical system

7. Desferrioxamine or Deferiprone injection

8. Medicines including their esters and salts including diagnostic test kits as per List 1 of central excise notification 12/2012

9. Ayurveda, Siddha, Unani, Homeopathic or Bio-chemic manufactured as per the formulations prescribed inappropriate pharmacopeia  or 1st Schedule of the Drugs and Cosmetics Act, 1940.

10. Artificial kidneys and disposable sterilized dialyzers or micro barriers of artificial kidneys

11. Artificial limbs, walking frames, wheelchairs and so forth.

12. Sent systems for cardiac catheters

Note: This list includes other medicine and medical equipment GST rate 5% in India slab rate is applicable.

12% GST Rate on Medicine and Medical Supplies

This slab rate is applicable to the following medicine and medical supplies:

1. Majority segment of medicine and medical supplies attracts 12% GST rate. Some of the major medicines and medical supplies that attract 12% GST Rate are:

2. Glands and various organs (including their extracts) dried or powdered for organ-therapeutic uses

3. Heparin and heparin salts

4. Any human or animal substances used for therapeutic or prophylactic purposes

5. Animal blood for diagnostic, therapeutic and prophylactic purposes

6. Micro-organisms (excluding yeasts) toxins and culture for medical use

7. Toothpowder

8. Sterile - surgical catgut, absorbable surgical/dental yarns, tissue adhesives for surgical wound closure, luminaria, and luminaria tents, and so forth.

9. Ayurveda, Unani, Bio-chemic, Siddha or homeopathic medicines for therapeutic or prophylactic use made using two or more constituents for retail sales (packed or unpacked).

10. Bandage, dressings, poultice, wadding, gauge and adhesive plasters for use in surgical, veterinarian, dental or medical procedures.

11. Diabetic foods, glucometer and glucometer test strips

12. The atrial septal defect occlusion device

13. Medical grade hydrogen peroxide, oxygen and so forth

14. X-rays photographic film/plates

Note: This list includes other medicines and medical supplies on which 12% GST slab rate is applicable.

18% GST for Medical Equipment

There are only a few medical supplies on which 18% GST on medicines is applicable and the list of such medical supplies includes:

1. Nicotine Polacrilex gum

2. Retail packs of dental/oral hygiene supplies including denture powders and fixative pastes, dental floss, etc. except toothpowders

3. Hair care products not including mehndi in cones

4. Dental, medical, surgical or veterinary furniture such as hospital beds, operating tables, examination tables, dental chair etc.

Note: This list includes other medicines and medical supplies on which 18% GST slab rate is applicable.

To know more GST rate of other goods and service you can use the HSN Code search list.

How to Calculate GST on Medicine?

To find out how much GST on medical equipment and medicines you need to pay, you need to multiply the price of your goods by the GST rate. For instance, if your medical device costs Rs. 1000 and the medicine GST rate is 12%, you will need to pay Rs. 120 as GST on medical equipment.

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