GST Calculator for Medicines: Add or Remove GST

This GST calculator adds GST to a price or takes it out of a price that already includes GST. It also splits the tax into CGST and SGST for a sale within your state, or shows it as IGST for a sale to another state. It was built for the pharma trade, so the default rate is the one most medicines carry, but it works for any product.

How to use the calculator

Add GST to price when you have a rate before tax, such as a PTR or PTS on a price list, and want the invoice value.
Remove GST from price when you have a figure that already includes tax, such as the MRP printed on a strip, and want the taxable value.
Pick the rate. For a rate that is not listed, type it in the Other box.
Choose within the state for CGST plus SGST, or to another state for IGST. The total tax is the same either way. Only the split changes.

The formulas behind it

Adding GST is simple: GST amount = price before tax × rate ÷ 100, and the total is the price plus that amount. Taking GST out needs one more step, because the tax is already inside the figure. The taxable value is the inclusive price × 100 ÷ (100 + rate). The GST is the difference between the two.

A quick example at 5%. A strip with an MRP of ₹105 has a taxable value of ₹100 and GST of ₹5. Within the state that is ₹2.50 CGST and ₹2.50 SGST. A common mistake is to take 5% of ₹105 and call it the tax, which gives ₹5.25 and an invoice that does not match.

GST rates for pharma products

The GST Council cut rates for most of the health sector with effect from 22 September 2025. The table below gives the broad picture. The exact rate always depends on the HSN code of the product, so check the notification or ask your chartered accountant for anything unusual.

Product type	Before 22 Sept 2025	From 22 Sept 2025
Most medicines and formulations, including Ayurvedic, Unani, Siddha and homoeopathic	12%	5%
Notified lifesaving drugs and certain drugs for cancer and rare diseases	5% or 12%	Nil
Diagnostic kits and reagents, glucometers, bandages and gauze	12%	5%
Medical, surgical and dental apparatus and devices	18%	5%
Active pharmaceutical ingredients (APIs)	18%	18%

Nutraceuticals, food supplements and cosmetic products are classified under their own HSN codes, and the rate can differ from that of medicines. Do not assume 5% for them without checking.

GST in a PCD franchise deal

In a franchise arrangement the company bills you at its agreed rate plus GST. You then bill chemists or stockists at PTR or PTS plus GST. As a registered distributor you can claim input tax credit for the GST you paid the company and set it against the GST you collect, so the tax itself is not your cost. Your margin is the difference between your selling rate and your buying rate, both before tax.

The MRP printed on the pack already includes GST. When a company changes a product's GST rate, the price before tax and the MRP have to be worked out again, which is why the cut in September 2025 led to new price lists across the trade. Our PTR PTS calculator handles this step: enter the MRP and the GST rate and it gives you PTR and PTS before and after tax.

CGST, SGST and IGST in plain words

When the seller and the buyer are in the same state, the tax is split equally between the Centre (CGST) and the state (SGST, or UTGST in a union territory). When goods move from one state to another, the whole amount is charged as IGST. A company in Baddi supplying a distributor in Punjab charges IGST. The same company supplying a distributor in Solan charges CGST and SGST.

Small things that cause big mismatches

Rounding each line to the rupee and then adding the lines gives a different total from rounding the final bill. Pick one method and use it every time.
Schemes such as free quantity change the value per unit. Work out GST on the actual billed value, not on the scheme price.
An old price list may still carry the old rate. Check the date on any list you receive.

Looking for a company that can supply a particular composition? Start from the molecules A to Z list or send us your requirement.

Frequently asked questions

What is the GST rate on medicines now?

From 22 September 2025, most medicines and formulations, including Ayurvedic and homoeopathic medicines, carry 5% GST. Certain notified lifesaving drugs are nil-rated. The exact rate depends on the HSN code, so confirm unusual products with your chartered accountant.

How do I calculate GST from an MRP?

Divide the MRP by one plus the GST rate to get the taxable value, then subtract it from the MRP to get the tax. For an MRP of ₹105 at 5%, the taxable value is ₹100 and GST is ₹5.

When do I charge IGST instead of CGST and SGST?

Charge IGST when the goods go from one state to another. When the seller and buyer are in the same state, the same total is split equally into CGST and SGST, or UTGST in a union territory.

Is GST a cost for a franchise distributor?

Usually not. A registered distributor pays GST to the company and collects GST from chemists, and claims input tax credit for what was paid. The margin is the difference between selling and buying rates before tax.

Are nutraceuticals taxed at the same rate as medicines?

Not always. Nutraceuticals, food supplements and cosmetic products fall under their own HSN codes, and their rate can differ from medicines. Check the HSN code and the current notification before you bill them.