Pharmacy GST Billing Is Complex — But ERP Makes It Simple
GST billing for pharmacies is more complex than most retail. Different medicines attract different GST rates — some are exempt (0%), some at 5%, and some at 12%. Surgical items, cosmetics, and nutraceuticals have yet different rates. Getting any of these wrong on your bill creates ITC problems for B2B customers and potential GST notices for your pharmacy.
Pharmacy ERP solves this by pre-configuring the correct GST rate for every medicine in your system — so billing staff never need to know (or look up) tax rates.
💊 GST Rate Reality: India has 5,000+ unique medicine formulations with varying GST rates. Manually tracking and applying the right rate for each one during billing is practically impossible — ERP makes it automatic.
Medicine GST Rates in India — Simplified
| Category | GST Rate | Examples |
|---|---|---|
| Essential Medicines | 0% | Life-saving drugs (insulin), certain fever/pain medications |
| Most Medicines | 5% | Majority of prescription drugs, OTC medicines |
| Branded Medicines & Nutraceuticals | 12% | Vitamins, nutritional supplements, some branded drugs |
| Cosmetics & Personal Care | 18% | Cosmetic creams, personal care products |
| Surgical Goods | 12% | Syringes, bandages, surgical gloves |
How ERP Automates Pharmacy GST Billing
1. HSN-Based Rate Assignment
Each medicine is mapped to its HSN code in the ERP product master. The GST rate is attached to the HSN code — so when you add any medicine to a bill, the correct rate is applied without any manual selection.
2. Separate GST Slabs in One Bill
A single patient bill may contain medicines at 0%, 5%, and 12% GST. ERP handles this correctly — calculating each rate separately and showing the GST breakup clearly on the bill.
3. GST for B2B Pharmacy Sales
When selling to clinics, hospitals, or other pharmacies (B2B), the buyer's GSTIN must be captured and proper B2B invoice format used. ERP handles this distinction automatically — switching to B2B format when a GSTIN is associated with the customer.
4. GSTR-1 for Pharmacies
The GSTR-1 for a pharmacy contains both B2B and B2C entries across multiple HSN codes and tax rates. ERP compiles this automatically — no manual spreadsheet work. One-click export and your GST consultant has everything they need.
MILAAN ERP Pharmacy GST Features
- Pre-configured HSN codes for 10,000+ medicine formulations
- Auto 0%/5%/12%/18% based on medicine type
- B2B and B2C invoice formats
- HSN-wise GSTR-1 report
- ITC tracking from distributor purchases
GST Billing for Your Pharmacy — Made Easy!
Book a FREE MILAAN ERP pharmacy demo and experience zero-error GST medicine billing.