Medicine HSN Code and GST Rate in India (Updated 2026)

The HSN (Harmonised System of Nomenclature) code is an internationally recognised classification system used to identify goods for taxation and trade purposes. In India, medicines and pharmaceutical products are generally classified under Chapter 30 of the HSN framework. The applicable HSN code determines the GST rate charged on a product, making accurate classification essential for correct GST invoicing, return filing and regulatory compliance.

Following the GST 2.0 rationalisation that came into effect on 22 September 2025, the GST structure for medicines underwent significant changes. The 12% GST slab for pharmaceutical products was removed, with most medicines now attracting GST at 5%. In addition, a specified list of life-saving medicines has been fully exempted from GST. This guide explains the current HSN classifications and GST rates applicable to medicines under Chapter 30, outlines the exempt category, and describes how pharmaceutical products are classified under the GST framework.

As part of the recommendations of the 56th GST Council, GST rates applicable to pharmaceutical products were rationalised. The 12% GST category for medicines was discontinued, resulting in most finished pharmaceutical formulations being taxed at 5% instead of 12%. Additionally, 37 specified life-saving medicines used in the treatment of cancer, rare diseases and other serious medical conditions were moved to the Nil GST category. Most medical devices and diagnostic kits were also brought under the 5% GST slab.

However, Active Pharmaceutical Ingredients (APIs), bulk drugs and pharmaceutical intermediates continue to attract GST at 18%. As GST classification is product-specific, businesses should always verify the applicable HSN code and GST rate for a particular medicine or pharmaceutical product through the official GST portal or relevant government notifications before issuing invoices or filing returns.

What is a medicine HSN code?

An HSN code is a numerical classification code used to identify products for GST and customs purposes. In India, medicines and pharmaceutical products are generally classified under Chapter 30 of the HSN system, which covers pharmaceutical preparations, vaccines, sera, blood products, medicated dressings and related healthcare products.

HSN codes may consist of 4, 6 or 8 digits, with additional digits providing a more detailed and specific classification of the product. For instance, HSN code 3004 broadly covers medicaments supplied in measured doses or packaged for retail sale, while the extended codes within this category identify specific types of medicines and therapeutic products.

Using the correct HSN code is essential for determining the applicable GST rate, issuing accurate tax invoices, ensuring proper GST compliance and facilitating smooth customs clearance for businesses involved in importing or exporting pharmaceutical products.

The table below outlines the principal HSN classifications under Chapter 30 and the GST rates applicable following the GST 2.0 rationalisation. Pharmaceutical products now generally fall under the Nil, 5% or 18% GST categories, as the 12% GST rate is no longer applicable to medicines and pharmaceutical products.

As GST classification is product-specific, businesses should verify the applicable HSN code and GST rate for each product before issuing invoices or filing GST returns. Accurate classification is essential for compliance and correct tax treatment under GST.

• Determine the nature of the product, such as a finished medicine, vaccine, medicated dressing, diagnostic kit, Active Pharmaceutical Ingredient (API) or another pharmaceutical item.
• Identify the appropriate classification under Chapter 30 of the HSN system, or under the relevant HSN chapter applicable to medical devices, APIs or related products.
• Use the HSN and GST rate search facility available on the GST portal to verify the correct HSN code and the applicable GST rate.
• Review the relevant CBIC notifications to confirm whether the product is included in the list of specified life-saving medicines that qualify for GST exemption.
• If there is any uncertainty regarding classification, seek professional advice from a GST practitioner or consider applying for an advance ruling to obtain clarity and minimise compliance risks.

Conclusion

Knowing and applying the correct HSN code for medicines and pharmaceutical products is crucial for businesses in the industry. Accurate classification helps ensure compliance with GST regulations, simplifies tax calculations, and facilitates seamless trade and logistics. This not only supports legal and financial operations but also builds a trustworthy business reputation. For companies aiming to grow or enhance their operations, accessing financial resources such as a business loan can provide the necessary capital to expand and maintain financial stability.