- GST rates on medicines in India range from 0% to 12%
- Essential and life-saving drugs are often exempt from GST
- Other drugs may fall under 5% or 12% GST rates
- Medicines are classified under HSN codes like 3003 and 3004
- GST impacts the cost of generic, branded, Ayurvedic, and life-saving drugs
- The GST Council and CBIC categorize medicines based on type and use
- GST has replaced multiple taxes, streamlining the taxation system
- 0% GST ensures affordability for life-saving drugs
- Generic medicines taxed at 5% remain affordable
- Branded and patented medicines taxed at 12% may see price increases
- GST simplifies compliance and reduces tax cascading for businesses
- Ayurvedic medicines are taxed at 12% under herbal and alternative categories
Source: vakilsearch.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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