This guide is in English for now. The tool itself works in your language.
Pharmacy bill › GST on medicines
GST on medicines and how to bill it
From 22 September 2025 most medicines are taxed at 5% GST, down from 12%. Here is how that shows on a chemist’s bill when the price is the MRP.
Which rate?
- Most medicines: 5% from 22 September 2025 (they were mostly at 12% before).
- A short list of life-saving medicines (certain cancer, rare-disease and chronic-disease drugs): nil, under Notification 10/2025-Central Tax (Rate).
- Other items a chemist sells (cosmetics, some devices, health drinks) can carry other rates. Use the HSN code and rate on your distributor’s purchase bill.
The rate depends on the product’s HSN code, not on the shop. Type the rate once per medicine; the maker remembers it.
GST is inside the MRP
The MRP printed on a pack includes all taxes. The patient pays the MRP or less. Your bill shows how much of that is tax:
- Taxable value = amount × 100 ÷ (100 + rate)
- GST = amount − taxable value, split equally into CGST and SGST in your own state.
| Amount paid | Rate | Taxable value | CGST | SGST |
|---|---|---|---|---|
| ₹105.00 | 5% | ₹100.00 | ₹2.50 | ₹2.50 |
| ₹94.50 (MRP ₹105 less 10%) | 5% | ₹90.00 | ₹2.25 | ₹2.25 |
| ₹500.00 | 0% | ₹500.00 | — | — |
Discounts
A discount given on the bill itself reduces the value on which GST is worked out, as in the second line above. The maker applies the discount first, then finds the GST inside the discounted amount. It also prints "You saved ₹… on MRP", which patients like.
Old stock after a rate change
When a rate falls, packs already printed with the old MRP may still be on the shelf. The rate on the date of sale applies, and the patient should get the benefit. Price-control and labelling instructions on such stock come from NPPA and the Legal Metrology department; follow their current advisories.