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Medicines Will Get Costlier After GST Rollout

Updated on: Jul 13th, 2021

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2 min read

Updates from 23rd May, 2017

The GST rate announced for the pharmaceutical industry is contrary to what the industry had been expecting. Though the sector had been wishing for zero tax, the GST Council has capped the rate of life-saving drugs at 5% and other formulations at 12%. So effectively, the rate of medicines post-July will be higher than what they are now. The list of essential medicines includes those that treat malaria, HIV-AIDS, tuberculosis, and diabetes. Everything else falls under the 12% bracket.

As reported in Economic Times

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Quick Summary

GST rate for pharmaceuticals unexpected. Life-saving drugs taxed at 5%, others at 12%. Essential medicines for malaria, HIV-AIDS, TB, diabetes stay at 5%. Other meds at 12%. Effective rise post-July. Follow-up on Economic Times report on GST ITC claims.

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