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

Find HSN codes and current GST rates for medicines and pharmaceuticals under Chapter 30, updated for GST 2.0 (effective 22 September 2025). Most medicines are now 5%, 37 life-saving drugs are Nil, and the 12% slab has been removed. Includes a Chapter 30 HSN code list.
Check loan offer
Business Loan
Check loan offer
4 min
June 15, 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.

Key GST 2.0 update (effective 22 September 2025)

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.

HSN code and GST rate on medicine and pharmaceuticals

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.

HSN codeProduct descriptionGST rate
3001Glands and other organs for therapeutic purposes; heparin; and human or animal substances prepared for therapeutic or prophylactic use5%
3002Human blood, animal blood, antisera, vaccines, toxins, cultures of micro-organisms and similar products5% (certain specified vaccines and products may be exempt)
3003Medicaments consisting of two or more constituents mixed together for therapeutic or prophylactic use, not supplied in measured doses or retail packs5%
3004Medicaments, whether mixed or unmixed, supplied in measured doses or packed for retail sale, including most tablets, capsules, syrups and injections5%
3005Wadding, gauze, bandages and similar articles impregnated or coated with pharmaceutical substances, or packaged for retail medical use5%
3006Pharmaceutical goods specified in Note 4 to Chapter 30, including sterile surgical products, dental cements, first-aid kits and contraceptive products5% (certain contraceptive products may be exempt)
3002/3003/3004Specified life-saving medicines used for the treatment of cancer, rare diseases and other serious medical conditions, as notified by the governmentNil
3822Diagnostic and laboratory reagents, certified reference materials and diagnostic kits5%
2936/2941 and related headingsActive Pharmaceutical Ingredients (APIs), bulk drugs and pharmaceutical intermediates used in manufacturing18%

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.


Importance of HSN codes for medicine

  • Correct GST treatment — The HSN code determines the applicable GST rate, whether Nil, 5% or 18%. Using an incorrect HSN code can result in the wrong tax being charged and may create compliance issues.
  • Accurate invoicing and GST return filing — GST invoices and returns must contain the appropriate HSN code, with the required level of detail depending on the taxpayer's turnover and applicable GST regulations.
  • Efficient customs clearance — For imported and exported goods, the correct HSN classification helps ensure smoother customs processing and the application of the appropriate customs duties and taxes.
  • Reduced risk of penalties and disputes — Incorrect classification may lead to underpayment or overpayment of tax, potentially resulting in interest, penalties and scrutiny from tax authorities.
  • Improved inventory management and reporting — Consistent use of HSN codes supports accurate stock management, product categorisation and reliable tax and business reporting.

GST rate categories for medicines after GST 2.0

The HSN system divides medicines into different categories based on their type and usage. Here are some key categories:

  • Nil (Exempt) — With effect from 22 September 2025, a specified list of 37 life-saving medicines, including treatments for cancer, rare diseases and other serious medical conditions, is fully exempt from GST. Many of these products were previously subject to GST at 5% or 12%. Certain contraceptive products and other notified healthcare items also continue to enjoy GST exemption.
  • 5% (Standard rate for most medicines) — The majority of finished pharmaceutical products now attract GST at 5%. This includes allopathic, Ayurvedic, Unani, Siddha and Homoeopathic medicines supplied in forms such as tablets, capsules, syrups and injections. Most diagnostic kits and several medical devices are also taxed at 5%. The reduction of many medicines from the earlier 12% rate to 5% represents one of the most significant changes introduced under the GST 2.0 rationalisation.
  • 18% (Industrial inputs and specified products) — Active Pharmaceutical Ingredients (APIs), bulk drugs, pharmaceutical intermediates and certain laboratory reagents and consumables continue to attract GST at 18%. These products are generally regarded as industrial or manufacturing inputs rather than finished consumer medicines. Certain specialised products, including nicotine gum, also remain subject to the higher GST rate.

Examples of medicine HSN codes

To illustrate how these codes apply to real-world products, here are some common examples:



Product typeHSN codeGST rate
Generic medicines30035%
Branded pharmaceutical preparations300412%
Vaccines30025%
Herbal and ayurvedic formulations30035%
Diagnostic test kits382218%

Understanding these examples helps businesses accurately classify their products, ensuring compliance and avoiding potential fines. For example, vaccines used in immunisation are subject to a lower GST rate of 5%, whereas certain diagnostic reagents may fall under an 18% GST rate. Proper use of these codes facilitates smoother customs processes and helps businesses maintain compliance with Indian tax regulations.


HSN code digit requirements by turnover

Annual aggregate turnoverHSN digits required on invoices
Up to Rs. 5 crore (B2B supplies)4 digits
Up to Rs. 5 crore (B2C supplies)4 digits (optional in some cases)
More than Rs. 5 crore6 digits
Imports and exports8 digits

How to find the HSN code and GST rate for a medicine

  • 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.

Frequently asked questions

What is HSN code 3004 medicine?
The HSN code 3004 refers to medicines that are used for therapeutic or prophylactic purposes. This category includes various medicinal products, such as vaccines, antibiotics, and other essential drugs. The code helps in the accurate classification of pharmaceutical products for tax purposes and ensures compliance with GST regulations, facilitating smooth trade and import/export processes.

What is the HSN code 30021290?
The HSN code 30021290 specifically pertains to vaccines and similar products. This code is used to categorise certain immunological products not specified in other codes, ensuring that these medicines are accurately documented for regulatory and taxation purposes. It plays an essential role in streamlining the process of import, export, and sale of such products, aligning with GST compliance standards.

How does correct HSN code help avoid GST penalties in pharma?

Using the correct HSN code ensures that medicines and pharmaceutical products are classified accurately for GST purposes. This helps businesses apply the correct tax rate, file returns properly, and maintain compliant invoices. Incorrect HSN reporting can lead to notices, tax demands, interest, penalties, and delays during GST audits.

What changed in medicine GST rates under 2026 GST reforms?

Under the GST reforms effective from September 2025 and continuing into 2026, many medicines were moved to a lower GST slab, while several life-saving drugs received full GST exemption. The reforms aimed to simplify tax rates, reduce compliance complexity, and make essential healthcare products more affordable for Indian consumers.

Show More Show Less

Bajaj Finance App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finance App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finance App to:

Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.

  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements, and even get quick customer support—all on the app.
Download the Bajaj Finance App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finance App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.
For customer support, call Personal Loan IVR: 7757 000 000