Is there GST on medicines in India?
India has a vast pharmaceutical industry and that holds a great future too. But after the implementation of GST in2017 every industry got affected and suffered a huge loss. The same applied to the medicines and pharma industry too. But the question arises that how much GST is applicable on medicines? Before answering this question let’s find out is GST applicable on medicines?
Is GST applicable on medicines?
The answer is yes! GST is applicable on medicines and pharma industry too. You have to pay some amount as GST on Medicines and Medical Supplies in India. Therefore, it is not recommended to buy pharmaceutical products from those retailers who don’t provide you the printed invoice of the products.
How much GST on various pharmaceutical products?
For medicines and medical services the GST rates are applied in the four phases that are NIL, 5%, 12%, 18%.
NIL rates of GST
On blood and its biproducts and all contraceptives
5% GST on medical products
On life saving medicines like vaccines, and medicines for tuberculosis, malaria, hepatitis, etc.
12% GST
12 per cent of tax is payable on drugs produced for medicinal or preventive applications by combining two or more components. All ayurvedic, homeopathic, universal or biochemical medications are also included. Also included in this category is medical equipment such as bandages, latex gloves, surgical and dental equipment, etc. This implies you may save up to 5-12 percent of your purchase value against incumbent GST on most items purchased using GST credit.
18% GST
The highest amount of GST of 18% is charged on the medicines and medical products that contains nicotine proletariat; for e.g. Nicotine gums
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