What is the GST rate for pharmaceutical manufacturers?
GST for pharmaceutical manufacturers: medicines and vaccines are taxed at 5% (the drugs in Annexure I of Notification 10/2025-Central Tax (Rate) are Nil), and so are many medical goods and inputs here; most chemicals and packing materials are 18%. The table gives each item's HSN or SAC code, the GST rate entries in force on 1 November 2026, and the rate before 22 September 2025 where GST 2.0 changed it. Open an item for every entry, its conditions and the CBIC notification.
In the free BooksOn HSN app, pick your business (kirana, medical store, hardware, engineering unit…) to see the HSN code and GST rate of the items it usually sells, makes or buys. Works offline, no ads.
Items, codes and GST rates
Choosing the right code
- Medicines (3003, 3004) are 5% since 22 September 2025 (most were 12%); vaccines were already 5% and stay at 5%; the drugs listed in Annexure I of Notification 10/2025-Central Tax (Rate) are Nil.
- An API or bulk drug is classified by its chemistry, mostly in Chapter 29 (vitamins 2936, hormones 2937, alkaloids 2939, antibiotics 2941, other molecules by chemical group). The Chapter 29 entry is 18%, but S. No. 226 of Schedule I to Notification 9/2025-Central Tax (Rate) gives 5% to all drugs and medicines, including their salts and esters, of any Chapter, so check whether your API falls under it. The same molecule put up in measured doses or packed for retail sale is a medicine of 3004.
- Bandages and dressings, syringes and needles, and diagnostic kits are 5% since 22 September 2025 (they were 12%); gelatin and lactose are 5% (they were 18%); empty capsules, glass vials and labels are 18%.
- Making medicines of Chapter 30 for another company on its materials (loan licence or contract manufacturing) is job work, SAC 9988, at 5% since 22 September 2025 when the company is registered (it was 12%); job work on APIs and other chemicals is 18%.
Other GST rules for these items
- If a transport company carries goods by road for a factory, society, co-operative society, company, firm or GST-registered business, the customer pays the GST. This does not apply if the transporter opted to charge GST itself (conditions apply). (Notification 8/2023-CT(R), entry 1)
Billing tips
- Put at least 4 digits of the HSN code on B2B invoices if your aggregate turnover in the previous year is up to ₹5 crore, 6 digits above that (Notification 78/2020-Central Tax).
- Where an item shows two rates, the rate depends on the exact code or a condition (for example packed and labelled, or a price limit) — check the item page.
- Charge CGST + SGST within your state and IGST to another state. Work out the tax with the GST calculator.
- For any other item, use the GST Rate Finder; for an old invoice, the rate on its date is in the free BooksOn HSN app.
Guides for other trades
- GST rates by business
- Kirana and grocery shops
- Supermarkets and department stores
- Hardware and building material shops
- Electrical shops
- Construction contractors and builders
- Real estate developers and property dealers
- Petrol bunks and fuel stations
- Textile, garment and footwear shops
- Electronics and mobile shops
- Restaurants, hotels and caterers
- Sweet shops and namkeen stalls
- Bakeries and cake shops
- Fruit and vegetable shops
- Dairy and milk shops
- Meat, chicken and fish shops
- Medical stores and pharmacies
- Stationery and book shops
- Auto parts shops and garages
- Salons and beauty parlours
- Jewellery shops
- Furniture and home furnishing shops
- Fertiliser, seed and pesticide shops
- Transporters and logistics firms
- CAs, lawyers, consultants and IT firms
- Engineering and fabrication units
- Tool rooms and tool dealers
- Auto and two-wheeler component makers
- Plastic moulding units
- Electrical equipment makers
- Electronics manufacturers
- Chemical manufacturers and dealers
- GST rate changes 2026
- GST rate changes 2025: old and new rates
Rates from the BooksOn HSN dataset (version 9), compiled from CBIC notifications, checked on 1 November 2026. Reference only: confirm the entry in the notification before invoicing.
