HSN and SAC codes for medicines with the GST rate after GST 2.0 — last checked 29 October 2026.
GST on medicines after GST 2.0
Most medicines a chemist sells — tablets, capsules, syrups, injections and ointments — fall under HSN 3004 and are taxed at 5% after GST 2.0, down from 12%. A short list of life-saving and specified drugs is nil-rated under Notification 10/2025. Bulk medicaments sit under 3003, and bandages and dressings under 3005.
Before you set the rate in your billing software, match the code to the item exactly: the first four digits name the heading, and the six- or eight-digit line decides the rate where a heading is split. When your supplier invoice shows a longer code, use that one.
Billing medicines correctly
- Print the HSN or SAC code on every line (4 digits up to ₹5 crore turnover, 6 digits above).
- Charge CGST + SGST inside your state and IGST for other states — the free GST invoice generator does this from the place of supply.
- For a price that includes GST, take the tax out by subtraction with the GST calculator.
- Check every B2B buyer's GST number with the GSTIN checker.
Sources: CBIC GST rate notifications — Notification No. 9/2025-Central Tax (Rate) (goods, as amended), 10/2025-Central Tax (Rate) (nil-rated goods) and 11/2017-Central Tax (Rate) as amended by 15/2025-Central Tax (Rate) (services), effective 22 September 2025, published on cbic-gst.gov.in; GST Council FAQs on the 56th meeting. Last checked: 29 October 2026. Rates depend on the exact tariff line and description; confirm borderline items with your CA. This list is a guide, not legal advice.
HSN codes for other products
HSN code for medicines — FAQ
What is the HSN code for medicines?
The common HSN or SAC codes for medicines are: 3003 for medicines (not in measured doses) — bulk medicaments (5%); 3004 for medicines in measured doses — tablets, capsules, syrups, injections, ointments (5%); 3004 for ayurvedic, Unani, Siddha and homoeopathic medicines (5%); 3005 for bandages, gauze, cotton wool, dressings, plasters (5%). Use the code printed on your supplier invoice where it is more specific, and see the full table on this page for related items and notes.
What is the GST rate on medicines after GST 2.0?
Under the GST 2.0 rates in force since 22 September 2025, medicines items on this page are taxed at 5% depending on the exact item. The table shows the rate against each HSN code, with a note where it matters.
Are Ayurvedic medicines 5% or 12%?
Ayurvedic, Unani, Siddha and homoeopathic medicaments sit under HSN 3004 and moved to 5% on 22 September 2025, the same as allopathic medicines. Cosmetics sold under an Ayurvedic brand are not medicines and follow their own heading.
How many digits of the HSN code should I print on the bill?
With an aggregate turnover up to ₹5 crore, print at least 4 digits on B2B tax invoices (optional on B2C). Above ₹5 crore, print 6 digits on all tax invoices. Printing the full 8-digit code from your supplier invoice is always allowed and avoids confusion in split headings.