6 min read · 24 September 2026
How pharmacy GST billing works in India
GST on medicines is simple once you see the pieces: each medicine has an HSN code and a GST rate, MRP usually already includes tax, and the tax you collect is balanced against the tax you paid to suppliers.
HSN code and GST rate
Every medicine is classified under an HSN code, and that decides its GST rate. Different medicines in your store can have different rates, so the rate must be saved per medicine, not once for the whole shop. Confirm rates with your CA or supplier invoices.
Tax-inclusive MRP
The MRP printed on a strip already includes GST. When you sell at MRP, the taxable value is MRP ÷ (1 + rate). For example at 12% GST, a ₹112 sale has a taxable value of ₹100 and ₹12 tax.
CGST and SGST
For a sale within your state, the tax is split equally into CGST and SGST — 12% becomes 6% + 6%. Sales to another state use IGST instead.
Input tax from purchases
The GST on your supplier invoices is input tax. Broadly, what you pay the government is output GST on sales minus eligible input GST on purchases. That's why purchase bills must be entered with their tax, not just totals.
What to give your CA each month
A rate-wise summary of sales and purchases (taxable value, CGST, SGST), plus your list of purchase invoices. Software that produces this report saves hours — but always have your CA review before filing.