HSN codes & GST rates for medicines in 2026 — a cheat sheet

If you sell medicines in India, the HSN code on each product determines the GST rate the government expects you to collect. Get it wrong and either you're eating the tax (charged too little) or the customer's CA won't credit their ITC (charged too much).

The four brackets

• 0% (nil-rated) — human blood, most contraceptives, hearing aid parts, sanitary napkins.
• 5% — most life-saving drugs, most WHO essential medicines, insulin, oral rehydration salts, certain vaccines.
• 12% — the workhorse rate for the vast majority of formulations, from antibiotics to antipyretics.
• 18% — nicotine gum/patches, most cosmetic and hygiene products, some medical devices.

Common HSN prefixes for pharmacies

• 3003 / 3004 — medicaments (packaged for retail). 12% for most; 5% for certain essentials.
• 3005 — surgical dressings, gauze, cotton wool. 12%.
• 3006 — pharmaceutical goods (blood grouping reagents, first-aid boxes, contraceptives). Mixed.
• 9018 — medical instruments. Usually 12%.
• 9021 — orthopaedic appliances. 5%.

Exceptions that catch retailers out

1. The same molecule at different rates — an insulin injection is 5%, but a paediatric insulin pen refill can attract 12% depending on notification interpretation. When in doubt, follow the supplier's HSN.
2. Bundled packs — a "diabetes kit" containing insulin (5%) and a glucose meter (12%) is treated as a composite supply at the higher rate. Sell them as separate lines to keep the split.
3. Cosmeceuticals — sunscreens marketed with drug claims are still 18% cosmetic. Don't let the "SPF 50 medicinal" label fool you.

How PharmaPOS handles this

Every product carries its own HSN and GST rate. On sale, the CGST/SGST split is computed backwards from the GST-inclusive label price. Your GSTR-1 HSN summary aggregates by HSN, exactly matching the government schema — no CA hand-editing required.