GST on medicines and medical supplies in India
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.