Medicine HSN Code: Understanding HSN Classifications for Medicines
Medicines are an essential part of health care. They include allopathic tablets and syrups, ayurvedic formulations, homeopathic medicines and many other preparations used to treat or prevent disease.
To charge GST correctly and keep compliance smooth, businesses must understand how medicines are classified under HSN and how GST rates apply to different types of medicines after the changes from 22 September 2025.
What Is the Medicine HSN Code?
Under GST, most medicines are classified in the chapter that covers pharmaceutical products. This chapter includes medicaments for human and veterinary use in the form of tablets, capsules, syrups, injections, ointments and similar products.
Medicines are grouped mainly under headings for medicaments put up in measured doses or in forms or packings for retail sale. These headings cover a wide range of formulations, whether they are allopathic, ayurvedic, homeopathic or other recognised systems of medicine.
Within these headings, detailed lines distinguish between different types of medicaments and pharmaceutical goods. However, for day to day billing and GST returns, most wholesale and retail businesses work with common four digit HSN families for medicines.
Key Medicine HSN Codes and GST Rates after 22 September 2025
| HSN Code | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|
| 3002 | Human and animal blood, vaccines and similar products | Vaccines and notified life saving biologicals | 0% |
| 3003 | Medicaments for therapeutic or prophylactic use | Ayurvedic, homeopathic and other medicaments in bulk or in retail packs | 5% |
| 3004 | Medicaments in measured doses or packings for retail sale | Allopathic tablets, capsules, syrups, injections and similar medicines | 5% |
| 3006 | Specified pharmaceutical goods | Diagnostic kits, sterile surgical materials and notified pharmaceutical items | 5% or 18% depending on notification |
| 3005 | Wadding, gauze and bandages impregnated with pharmaceutical substances | First aid dressings and medicated bandages | 5% |
HSN Code for Ayurvedic, Allopathic, and Homeopathic Medicines
Ayurvedic medicines that follow classical texts or are proprietary ayurvedic formulations are usually classified in the medicaments headings of the pharmaceutical chapter. Their HSN code is generally drawn from the same four digit family that covers other medicaments, with further detail at the six or eight digit level.
Allopathic medicines such as common pain relief tablets, antibiotics, syrups, injections and chronic disease medicines are also classified in the main medicament headings. Most retail packs of allopathic medicines fall under the HSN family for medicaments in measured doses or in packings for retail sale.
Homeopathic medicines, whether in globules, tablets, drops or mother tinctures, are similarly grouped under medicament headings in the pharmaceutical chapter. Their HSN code comes from the same broad family that covers other medicaments, although their detailed subheadings are specific to homeopathic preparations.
In practice, distributors, chemists and hospitals assign the same four digit medicament HSN group to ayurvedic, allopathic and homeopathic medicines and then use item descriptions and internal codes to distinguish between systems of medicine and brands.
GST on Medicines and HSN Code Classification
With the move to a revised three slab GST system from 22 September 2025, most ordinary medicines that were earlier taxed at 12% have shifted to a lower 5% slab, while life saving medicines enjoy 0% GST. Only a limited set of pharmaceutical or medical products continue to fall in the standard 18% slab.
In simple terms, vaccines and notified life saving drugs fall under a 0% GST rate. Common allopathic medicaments, ayurvedic preparations and homeopathic medicines used for regular treatment normally attract 5% GST under their medicament HSN codes.
Certain specialised pharmaceutical goods, diagnostic kits and medical devices may still be taxed at 18% if they are listed in specific entries. In many other cases, important medical devices and disposables have also moved to 5% to reduce the cost of treatment.
For GST compliance, medicine traders and hospitals configure each product in their accounting software with the correct HSN code and the applicable GST rate, usually 0% or 5% for medicines. Invoices show the HSN code for each medicine line so that buyers can see the rate and verify input tax credit eligibility.
When businesses file GST returns, they report their outward supplies HSN wise. This helps the tax department see how much turnover relates to life saving medicines at 0% and how much to other medicines at 5%, and it helps avoid mismatches between the supplier and recipient records.
Conclusion
The medicine HSN code system groups allopathic, ayurvedic, homeopathic and other medicaments in a common pharmaceutical chapter, with detailed headings for vaccines, medicaments and related pharmaceutical goods.
After the GST changes from 22 September 2025, most regular medicines fall in the 5% slab while notified life saving medicines are at 0%. When pharmacies, distributors and hospitals use the correct HSN codes and GST rates on every invoice, their billing stays accurate, input tax credit flows smoothly and the risk of notices or penalties for wrong classification is reduced.
I’m Fazeel Zaidi, a Chartered Accountant based in Prayagraj with 8 years of experience. I specialize in GST and Audits, helping businesses stay compliant and audit-ready. With a B.Com background, I focus on practical, clear guidance that simplifies regulations and supports better decision-making.
Frequently Asked Questions
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What is the HSN code for medicines in India?
In India, medicines are mainly classified in the pharmaceutical chapter under medicament headings. Most allopathic, ayurvedic and homeopathic formulations fall in the four digit HSN families that begin with 3002, 3003 or 3004, depending on the type of medicament.
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What is the GST rate for medicines under HSN code?
After the changes from 22 September 2025, notified life saving medicines and certain vaccines are at 0% GST, while most ordinary medicaments for human use attract 5% GST under their medicament HSN codes. Only a limited set of specialised items continue at 18%.
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How are Ayurvedic, Allopathic, and Homeopathic medicines classified under HSN code?
Ayurvedic, allopathic and homeopathic medicines all fall under the medicament headings in the pharmaceutical chapter. Their detailed subheadings change based on the system of medicine and the form, but they share the same broad HSN families for medicaments.
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What is the HSN code for Ayurvedic medicines?
Ayurvedic medicines, whether classical or proprietary, are classified as medicaments in the pharmaceutical chapter. In practice they are usually mapped to the same four digit medicament HSN family as other therapeutic products and then further identified by detailed subheadings and descriptions.
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How does the GST rate for medicines vary under the HSN code?
The GST rate for medicines varies based on their HSN classification and any special notifications. Life saving medicines and certain vaccines are at 0%, most regular medicaments are at 5%, and only some specialised pharmaceutical goods and devices fall in the 18% slab.