The pharmaceutical industry in India is growing at a rapid pace, and it is essential for business owners and startup founders to stay updated with the latest GST rates and HSN codes for their products. Under Chapter 30 of the GST Schedule, drugs and medicines are classified based on their composition, therapeutic value, and usage.
The GST rate for pharmaceutical products depends on the type of product and its composition. Here is a detailed list of GST rates for different types of drugs and medicines:
1. 5% GST rate is applicable to life-saving drugs, vaccines, and medicines that cure diseases such as malaria, tuberculosis, and HIV/AIDS.
2. 12% GST rate is applicable to Ayurvedic, Unani, Siddha, and Homeopathic medicines.
3. 18% GST rate is applicable to all other medicines, including vitamins, antibiotics, and painkillers.
4. 28% GST rate is applicable to products such as Botox, dermal fillers, and other cosmetic products that are not essential for medical treatment.
It is important to note that GST rates may change based on government notifications, and business owners should stay updated with any changes in the tax rates.
HSN codes are used to identify the type of product and its composition, allowing for easier tax classification and assessment. Here are the HSN codes for different types of pharmaceutical products:
1. HSN code 3002 is used for vaccines and serums, including their fractions and derivatives.
2. HSN code 3003 is used for medicaments, including Ayurvedic, Unani, Siddha, and Homeopathic medicines.
3. HSN code 3004 is used for medicaments (other than vaccines) that are in dosage form, including tablets, capsules, and syrups.
4. HSN code 3005 is used for medicaments in other forms, such as ointments, plasters, and medicated dressings.
5. HSN code 3006 is used for surgical dressings, bandages, and similar articles.
It is crucial for business owners to use the correct HSN codes for their products to avoid any confusion during tax assessment and ensure compliance with GST regulations.
Understanding the GST rates and HSN codes for pharmaceutical products is crucial for business owners and startup founders in the industry. This article provides detailed information about the tax rates and HSN codes for different types of drugs and medicines under Chapter 30. By staying updated with the latest GST regulations, businesses can ensure compliance and avoid any penalties for non-compliance.
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