HSN and GST on Medicines and Medical Supplies in India +91-7206070155

The tax is imposed on goods and services in India at four None, 5%, 12%, and 18% on drugs and medical supplies. In India, the tax is imposed. Blood and its by-products and all contraception products shall be paid for the NIL rate. Life-saving medications such as vaccines and treatments such as tuberculosis, AIDS, diabetes, and malaria, are paying at the lowest 5% GST. Only medical goods, including nicotine gums that contain nicotine polacrilex, have the highest GST levels at 18%. Although GST will be paid at the rate of 28% on many other GST goods and facilities, no medications or medical supplies will be charged.

CAIT Asks Attention on Online e-Pharmacy

The CAIT has once again sought to understand what damage the internet sale of chemists and pharmaceutical stores is doing. The CAIT requested the Piyush Honorable Trade Minister to find online e-commerce websites which do pharmaceuticals online and offer retailers tough competition. Big discounts are very dangerous for manufacturers and this must be closely observed on the grounds of chemists' health.

1 . NIL Rate of GST on Medicines and other Medical Supplies

• Human blood and medicinal ingredients
• All kinds of contraception products

2. 5% Rate of GST on Medicines and other Medical Supplies

GST charges 5 percent for products and medical supplies are:-.

• Human/animal blood vaccines
• Oral rehydration salts
• Diagnostic kits for detecting all types of hepatitis
• Cyclosporin
• Formulations manufactured from bulk drugs specified in List 2 of central excise notification 12/2012
• Artificial limbs, wheelchairs, crutches, walking frames, etc.
• Insulin
• Ayurvedic, Siddha, Unani, Homeopathic or Bio-chemic medicines manufactured following formulations prescribed inappropriate pharmacopeia/ First Schedule of the Drugs and Cosmetics Act, 1940.
• Artificial kidneys as well as disposable micro barriers/sterilized dialyzers of artificial kidneys
• Medicaments (inclusive of veterinary medicines) used in the biochemical medical system
• Deferiprone or Deferoxamine injection
• Medicines or drugs as well as their esters and salts as well as diagnostic test kits (specified in List 1 of central excise notification 12/2012)
• Coronary stents/stent systems for use with cardiac catheters

Instead of those mentioned in the list, several other medicines and supplies are paid for GST at 5 percent.

3.  12% Rate of GST on Medicines and other Medical Supplies

GST charges at 12 percent of products and medical equipment are:

• Dried or powdered organ-therapeutic or dried glans (includes extracts of the glans) and other tissues, including organic extracts.
• Animal blood prepared for diagnostics, treatment, and preventive treatment
• Animal blood fractions including anti-anemia and other blood fractions, along with associated immunological drugs ·
• Heparin and multiple sales for heparin
• Human/animal agents used for prophylactic or medicinal purposes
• Toxins, cultures of microorganisms (excluding yeasts), and similar products for medical use
• Toothpowder
• Therapeutic/prophylactic products consisting of two or three parts, which are both packaged for retail sales and not packed for retail sales, for Ayurvedic, Unani and Bio-chemical.
• Bandages, wadding, gauges, and similar items for operation, veterinary, dental, or medical purposes, including dressings, poultices, and adhesion plaster
• Sterile chirurgical/dental products, sterile adhering material, sterile tissue adhesives for the surgical wound shed sterile luminaires, and sterile surgical/dental adhesives.
• Diabetic foods, blood glucose monitoring system (glucometer), and test strips
• Atrial septal defect occlusion device/Patent Ductus Arteriosus
• Medical grade oxygen, hydrogen peroxide, etc.
• Photographic film/plates for use in medical use X-rays

Many other medicines and supplies are charged GST at the rate of 12% instead of those stated in the list.

4. 18% Rate of GST on Medicines and other Medical Supplies

GST paid at the cost of 18% for medical services and products:

• Polacrilex nicotine rubber
• Dental/oral care preparations in individual store packaging from toothing powders and fixing pastes, dental flooring, etc (excluding toothpowder)
• Different products for hair care (excluding mehndi paste in cones)
• Furniture such as hospital beds, surgical, medicinal, or veterinary surgery, operating tables, exam tables, etc.

Instead of those listed in the list, several other medicines and supplies receive 18% of GST.

NIL GST on Medical Services

The GST act of 2017 includes all regulations on human and veterinary health care (animals), which state that Zero prices for GST are costing the services of a general doctor, a licensed medical facility, or a paramedical clinic and that the emergency services for the carriage of patients are applied for. In veterinary care and facilities, the same rate applies.

NIL GST on Hospitalisation

The Advance Ruling Authority (AAR) in Kerala ordered that GST be liable at the percentage rate of NIL at the time that an individual is hospitalized, for medicinal products and medical care, implants, and related other activities. The AAR claimed that the Null rate would apply as these medications and supplies are part of the hospital health service. This decision applies throughout the country to all hospitals and clinics.

Impact of GST on Medicines and Medical Supplies

With the implementation of GST in Value Added Tax (VAT), a cascade in the manufacture and supply of medicinal products and medical services of all sorts has been eliminated. The GST is levied on medicinal products such that costs remain in most cases unchanged. The excise duty is abolished on diet items, and duties for the good of consumers are lowered.

The PCD Pharma Manufacturing companies had to store the supplies at a rate of 2 percent, as the intergovernmental supplies paid VAT, but since the implementation of GST the storage prices have been lowered, since the input tax loan has been issued and the GST rate has been the same in all states. That's GST's biggest influence.