GST rate and HSN code for medicines
GST on medicines is 5% (HSN 3004) from 22 September 2025 for medicines in retail packs: tablets, capsules, syrups and injections. Heading 3004 medicines were at 12% before. 37 life-saving drugs listed in Annexure I of Notification 10/2025 are nil. A chemist's bill is mostly 5%, with some nil lines.
HSN code and GST rate for medicines
| Condition | HSN | GST | CGST + SGST | IGST | Schedule entry |
|---|---|---|---|---|---|
| Medicines in retail packs (tablets, syrups, injections) | 3004 | 5% | 2.5% + 2.5% | 5% | Notification 9/2025-CT(Rate), Schedule I, S. No. 234 |
| 37 listed life-saving drugs (Annexure I of Notification 10/2025) | 30 | Nil | Nil | Nil | Notification 10/2025-CT(Rate), S. No. 113 |
In force from 22 September 2025. Inside your State, half the rate is CGST and half SGST; for a buyer in another State the full rate is IGST (same entries in Notification 9/2025-IT(Rate)). Entry wording (shortened): “Medicaments put up in measured doses or in forms or packings for retail sale”.
What changed in September 2025
| Condition | Before 22 Sep 2025 | From 22 Sep 2025 |
|---|---|---|
| Medicines in retail packs (tablets, syrups, injections) | 12% | 5% |
Old rate as listed in Annexure I of the PIB release on the 56th GST Council meeting (3 September 2025).
What to print on the bill
- Print HSN 3004 at 5% for retail-pack medicines.
- Check whether a drug is on the nil list (Annexure I of Notification 10/2025).
- Batch number and expiry are drug-law requirements, not GST; print them anyway.
- HSN digits: 4 if your turnover last year was up to ₹5 crore, 6 above that; up to ₹5 crore you may leave HSN off bills to unregistered buyers (Notification 78/2020-CT). More in B2C bill rules.
Common mistakes
- Still billing medicines at 12%.
- Billing cosmetics sold at the chemist (creams, shampoos) at the medicine rate.
- Billing health supplements as medicines without checking the supplier's HSN.
Put the right HSN and GST on every bill
RichPOS saves the HSN and GST rate on each item and applies them on every bill automatically, with the HSN printed on A4 GST invoices and GST reports by HSN for your CA. Free 30-day trial, ₹99/month for 3 months (then ₹199/month).
Questions about GST on medicines
What changed for medicines in September 2025?
Medicaments of heading 3004 went from 12% to 5% (PIB, Annexure I). 'All drugs and medicines' not on the nil list are 5% under Schedule I, S. No. 226.
Which medicines are nil?
The 37 drugs listed in Annexure I of Notification 10/2025 (for example agalsidase beta, daratumumab, risdiplam). Most counter medicines are 5%.
Are Ayurvedic medicines 5%?
Yes. Heading 3004 includes Ayurvedic, Unani, Siddha and homeopathic medicaments put up for retail sale.
What is the GST on a glucometer?
Glucometers and test strips are 5%, down from 12%.
More medicines and medical devices
Look up another item in the HSN and GST rate finder, or see all GST rates by category.
General information, not tax advice. Rates are taken from Notification No. 9/2025-Central Tax (Rate), dated 17 September 2025 and Notification No. 10/2025-Central Tax (Rate), dated 17 September 2025 (exempt goods), as amended, and were last checked on 16 October 2026. The rate depends on the exact description and classification of your product: check it with your CA.