The government of India has set the GST rate on medicine and medical supplies depending upon the nature and necessity of the same. Currently, there are 4 slab rates of GST on medicines and medical supplies that we will discuss in this article.
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:
- Blood vaccines for human and animals
- All types of hepatitis diagnostic kits
- Oral rehydration salts
- Generic medicaments including veterinary medicines used in a bio-chemic medical system
- Desferrioxamine or Deferiprone injection
- Medicines including their esters and salts including diagnostic test kits as per List 1 of central excise notification 12/2012
- Ayurveda, Siddha, Unani, Homeopathic or Bio-chemic manufactured as per the formulations prescribed inappropriate pharmacopoeia or 1st Schedule of the Drugs and Cosmetics Act, 1940.
- Artificial kidneys and disposable sterilized dialyzers or micro barriers of artificial kidneys
- Artificial limbs, walking frames, wheelchairs and so forth.
- Sent systems for cardiac catheters
Note: This list includes other medicine and medical equipment’s on which 5% GST slab rate is applicable.
12% GST rate on medicine and medical supplies
This slab rate is applicable to the following medicine and medical supplies:
- 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:
- Glands and various organs (including their extracts) dried or powdered for organ-therapeutic uses
- Heparin and heparin salts
- Any human or animal substances used for therapeutic or prophylactic purposes
- Animal blood for diagnostic, therapeutic and prophylactic purposes
- Micro-organisms (excluding yeasts) toxins and culture for medical use
- Sterile - surgical catgut, absorbable surgical/dental yarns, tissue adhesives for surgical wound closure, luminaria, and luminaria tents, and so forth.
- Ayurveda, Unani, Bio-chemic, Siddha or homoeopathic medicines for therapeutic or prophylactic use made using two or more constituents for retail sales (packed or unpacked).
- Bandage, dressings, poultice, wadding, gauge and adhesive plasters for use in surgical, veterinarian, dental or medical procedures.
- Diabetic foods, glucometer and glucometer test strips
- The atrial septal defect occlusion device
- Medical grade hydrogen peroxide, oxygen and so forth
- X-rays photographic film/plates
Note: This list includes other medicines and medical supplies on which 12% GST slab rate is applicable.
18% GST on medical supplies
There are only a few medical supplies on which 18% GST rate is applicable and the list of such medical supplies includes:
- Nicotine Polacrilex gum
- Retail packs of dental/oral hygiene supplies including denture powders and fixative pastes, dental floss, etc. except toothpowders
- Hair care products not including mehndi in cones
- 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" target="_blank" rel="noopener noreferrer">HSN Code search list.