The medicine hsn code for tablets, capsules, syrups, injections and ointments packed for sale is 3004, and GST on medicines is now 5% for almost all of them, down from 12% before 22 September. Ayurvedic, unani, siddha and homoeopathic medicines share the same 5% rate.
Medicines listed as life saving drugs in the annexure to the nil notification, human blood and contraceptives carry no GST. This page explains 3003 and 3004, the nil list, a chemist's bill and how to tell a medicine from a cosmetic. Medical devices are on the medical equipment page.
Medicines: codes and GST rates
Item / HSN / GST- Medicines in measured doses or retail packs5%Tablets, capsules, syrups, injections
- Ayurvedic, unani, siddha and homoeopathic medicines5%Classical and proprietary
- Medicaments not in doses (bulk)5%Two or more constituents mixed
- Vaccines and blood products for therapy5%Animal or human blood vaccines
- Human blood and its componentsNilNil list
- Life saving drugs listed in the annexureNilNil list
- ContraceptivesNilAll types
- Bandages, gauze, dressings5%Medical wadding
- Menthol and peppermint oil from natural menthol5%Specific entry
- Medicated cosmetics and creams sold as cosmetics18%Classified as cosmetics, not medicine
Quick facts
HSN heading
3004: medicaments in measured doses or retail packsGST rate
5% (2.5% CGST + 2.5% SGST)Rate before the reform
12% for most medicinesNil items
Listed life saving drugs, blood, contraceptivesDigits to print
4 digits up to Rs 5 crore turnover, 6 aboveCommon wrong code
3304 for creams that are medicines
Medicine hsn code and gst rate table
| Product | HSN | GST |
|---|---|---|
| Tablets, capsules in strips | 3004 90 | 5% |
| Syrups and suspensions | 3004 90 | 5% |
| Injections | 3004 | 5% |
| Antibiotic formulations | 3004 10 or 3004 20 | 5% |
| Insulin and hormone products | 3004 31 to 3004 39 | 5% |
| Vitamin formulations | 3004 50 | 5% |
| Ayurvedic medicines | 3004 90 11 | 5% |
| Homoeopathic medicines | 3004 90 14 | 5% |
| Bulk medicaments, not in doses | 3003 | 5% |
| Vaccines | 3002 | 5% |
| Life saving drugs on the nil list | 3004 | Nil |
| Contraceptives | 3006 | Nil |
3004 hsn code gst rate after the reform
Heading 3004 covers medicines made up in measured doses (tablets, capsules, injections) or in forms or packings for retail sale. Schedule I lists 3004 at 5%. Before the reform the rate was 12% for most formulations and 5% for a few. Chemists should check that their billing masters show 5% for every 3004 item that is not nil.
Ayurvedic medicine hsn code
Ayurvedic, unani, siddha and homoeopathic medicines made up for retail sale are in 3004, with 8 digit lines such as 3004 90 11 (ayurvedic) and 3004 90 14 (homoeopathic). They are 5%. A product sold as an ayurvedic medicine with a drug licence is 3004; a herbal face cream or hair oil sold as a cosmetic is Chapter 33. See cosmetics and shampoo and hair oil.
Nil rated medicines
The nil notification lists drugs and medicines in an annexure, including many treatments for cancer, rare diseases and other serious conditions. Human blood and its components and all types of contraceptives are also nil. A medicine that is not on the list stays at 5%, even if it is an important drug.
3003 hsn code: bulk medicaments
Heading 3003 is for medicaments of two or more constituents mixed for therapeutic use but not put up in measured doses or retail packs. Bulk drug mixes sold between manufacturers fall here at 5%. Single active ingredients (APIs) are chemicals in Chapter 29, mostly at 18%; see chemicals.
Chemist's invoice
Wholesaler to a pharmacy: Paracetamol 500 mg tablets, HSN 3004 90, 200 strips, taxable value Rs 4,000. Cough syrup, HSN 3004 90, 50 bottles, Rs 3,500. CGST 2.5% Rs 187.50. SGST 2.5% Rs 187.50. Total Rs 7,875.
A pharmacy that also sells cosmetics and devices will show several rates on one bill. Hospitals supplying medicines to in-patients as part of treatment are supplying exempt health care, not selling medicines separately.
Medicine gst rate and credit for pharma makers
A drug maker paying 18% on APIs and packaging but selling at 5% can be left with surplus credit, which may be claimed back as an inverted structure refund if the conditions are met. Job work on pharmaceutical products is 5%; see job work.
Medicine rates here describe the general position after the reform. Whether a drug is on the nil annexure, or whether a product is a medicine or a cosmetic, needs a careful check, so read the current notifications on the GST portal and ask a GST practitioner or chartered accountant before billing a doubtful product.
Frequently asked questions
What is the GST on medicines now?
Most medicines under 3004 are taxed at 5% since 22 September. Drugs listed in the nil annexure, human blood and contraceptives are nil.
What is the 3004 hsn code gst rate?
5%, for medicines in measured doses or retail packs.
What is the ayurvedic medicine hsn code?
Ayurvedic medicines are 3004 90 11, at 5%.
What is the 3003 hsn code?
3003 covers mixed medicaments not in measured doses or retail packs, at 5%.
Is GST charged on life saving drugs?
Drugs listed in the annexure to the nil notification carry no GST. Others are 5%.