5% GST Payable On Homoeopathic Medicaments: AAR

The West Bengal Authority for Advance Ruling (WBAAR) has ruled that 5% GST is payable on Homoeopathic Medicaments. The bench of Shafeeq S. and Jaydip Kumar Chakrabarti has observed that the medicaments manufactured by the applicant whether consisting of mixed or unmixed products will be covered by Tariff item no. 30049014 and accordingly it will come under entry no. 234 of Schedule I of Notification No. 1/2017 Central Tax (Rate) Dated 28.06.2017, as amended up to date if it is put up in measured doses or in forms or packing for retail sale. It will include the medicaments manufactured by the applicant exclusively in accordance with the formulae described in Homoeopathic Pharmacopoeia of India or the United States of America or the United Kingdom or the German Homoeopathic Pharmacopoeia, as the case may be, and w h e n sold under the name as specified in such pharmacopoeia. The rate of applicable of GST is 2.5% CGST + 2.5% SGST. The applicant had approached the Authority seeking certainty on whether different categories of homoeopathic medicaments—those with a single constituent and those with multiple constituents—should attract different GST rates and fall under different tariff headings. The query assumed importance in light of amendments to GST rate schedules following decisions of the GST Council. Background of the Case The applicant is a manufacturer of homoeopathic medicaments prepared exclusively as per formulae prescribed in authoritative texts listed under the First Schedule to the Drugs and Cosmetics Act, 1940, and recognised Homoeopathic Pharmacopoeias of India, the USA, the UK, and Germany. The product range includes potentised medicines, mother tinctures, biochemic tablets and powders, triturations, and ointments and gels, sold in various pack sizes and forms. Prior to seeking the ruling, the applicant was charging GST at 5% on single-constituent medicaments under HSN 30039014 and GST at 12% on medicaments containing two or more constituents under HSN 30049014. To avoid future disputes, the applicant sought confirmation of the correct HSN codes and GST rates applicable after recent amendments to the GST rate notifications SETT DEY AND CO HOMOEO LAB Key Observations by the Authority The Authority examined the relevant provisions of the Customs Tariff Act, 1975, GST rate notifications, and the amended Schedule I issued after the 56th meeting of the GST Council. It noted that Schedule I covers medicaments manufactured exclusively according to authoritative pharmacopoeias and sold under names specified therein, attracting a concessional GST rate of 5% (2.5% CGST + 2.5% SGST). The AAR also analysed the distinction between tariff headings 3003 and 3004. Heading 3003 applies to medicaments consisting of two or more constituents mixed together for therapeutic or prophylactic use, not put up in measured doses or retail packaging. Heading 3004, on the other hand, covers medicaments—whether mixed or unmixed—that are put up in measured doses or retail packs. The Authority clarified that the term “medicament” has a broad meaning and includes liquids, globules, tablets, powders, ointments, gels, and mother tinctures used for therapeutic purposes. All the products manufactured by the applicant were therefore held to qualify as medicaments under Chapter 30 of the Customs Tariff Answering the questions raised, the WBAAR ruled that homoeopathic medicaments manufactured exclusively as per recognised pharmacopoeias and consisting of a single constituent fall under tariff item 30049014 when put up in measured doses or retail packs. These products are covered under Entry 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate) and attract GST at 5%. For medicaments consisting of two or more constituents, the Authority held that if they are not put up in measured doses or retail packaging, they fall under tariff item 30039014 and Entry 233 of Schedule I. However, if such multi-constituent medicaments are sold in measured doses or retail packs, they shift to tariff item 30049014 under Entry 234. In both situations, the applicable GST rate remains 5% (2.5% CGST + 2.5% SGST) Ruling Details Applicant’s Name: Sett Dey And Co Homoeo Lab Ruling Date: 10/12/2025 Click Here To Read Ruling Read More: GST Exemption On Business Transfer as Going Concern: AAR

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