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Healthcare12% GST RateUpdated July 2026

Calculate GST for Medicines

Calculate GST on life-saving drugs, general medicines, health supplements, and medical devices.

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Quick Summary

HSN/SAC Code#3004
Tax CategoryHealthcare
ITC EligibilityEligible for pharmacies, medical distributors, and registered healthcare facilities
Effective DateJuly 1, 2017 (Standard Healthcare Classifications)
Applicable Tax
12%
Standard GST RateHSN Code 3004

GST Rate Explanation

Medicines, formulations, and drugs are classified under HSN chapter 3004. While the standard general rate for pharmaceutical formulations, medicines, and antibiotics is 12% GST, concession rates of 5% apply to specific life-saving drugs (such as insulin, oncology medicines, and vaccines). Nicotine gums and nutritional health supplements fall under the higher standard 18% GST rate.

Calculation Mode
Net Amount (Before Tax)₹10,000.00
CGST (Central Tax) (6.0%)₹600.00
SGST (State Tax) (6.0%)₹600.00
Total GST (12%)₹1,200.00
Gross Amount₹11,200.00

Visual Tax Split & Collection Rules

Intrastate Split Allocation
CGST (Central Tax): 6.0%
SGST (State Tax): 6.0%

Within State (CGST + SGST)

When supply is within the same state (intrastate), the CGST and SGST are collected. The total tax is split 50/50 between Central and State governments.

Across States (IGST)

When supply spans across states (interstate), a single Integrated GST of 12% is collected in full by the Central government before allocation.

GST Rate Structure Slabs

Tax SlabCGST (Central)SGST (State)IGST (Integrated)Notes
0%0.0%0.0%0.0%Exempted / Nil rated goods
5%2.5%2.5%5.0%Essential items & services
12%6.0%6.0%12.0%Standard reduced rate items
18%9.0%9.0%18.0%Standard general rate items
28%14.0%14.0%28.0%Luxury / Sin goods & services

GST Calculation Examples

General prescription formulations

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹800.00

GST (12%): ₹96.00

Total: ₹896.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹800.00

Base Amount: ₹714.29

GST Included: ₹85.71

Specialty cardiovascular medications

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹5,000.00

GST (12%): ₹600.00

Total: ₹5,600.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹5,000.00

Base Amount: ₹4,464.29

GST Included: ₹535.71

Frequently Asked Questions

Tax Disclaimer Notice

Medicines carry different GST rates (0%, 5%, 12%, or 18%) depending on classification. General life-saving drugs and formulations are at 12%.

Last updated: July 2026