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CGST, SGST and IGST

The three components GST is split into, depending on whether a sale crosses a state border.

A sale within your own state is taxed as CGST plus SGST, split equally — a 5% medicine carries 2.5% CGST and 2.5% SGST. A sale to another state carries IGST at the full 5% instead. Almost every retail pharmacy sale is intra-state, so CGST/SGST is the normal case on a counter bill.

The split matters for purchases too. Stock bought from a distributor in your own state gives you CGST and SGST input credit; stock bought from another state gives IGST credit. The credits are usable in a prescribed order, which is why an out-of-state purchase can leave credit sitting unused if your sales are all local.

The invoice must show the components separately, not just a total tax figure. A bill showing only 'GST 5%' without the split is incomplete for a B2B buyer who needs to claim credit against it.

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Related terms

HSN codeThe Harmonised System of Nomenclature code that determines a product's GST treatment. GSTR-1The monthly or quarterly GST return reporting outward supplies — a pharmacy's sales. Input tax credit (ITC)Credit for GST paid on purchases, set off against GST collected on sales. GSTR-3BThe summary GST return through which tax is paid and input tax credit is claimed.

All terms

Batch numberBreakage and damageCDSCOCGST, SGST and IGSTCold chainCredit noteDPCO (Drugs Prices Control Order)Drug licence (Form 20 / Form 21)Expiry returnFEFO (First Expiry First Out)Generic vs branded medicineGSTR-1GSTR-3BHSN codeInput tax credit (ITC)Loose sale (cut strip)MRP (Maximum Retail Price)Narcotic registerNear-expiry stockNPPAPack factor (units per pack)Pharmacist registrationPTR (Price to Retailer)PTS (Price to Stockist)Purchase invoiceRed-border warning labelReorder levelRetail vs wholesale drug licenceReturn to vendor (RTV)Rule 65Rx symbolSalt compositionSchedule HSchedule H1Schedule XScheme goods (free goods)Shortbook (short book)Stock rotationStockist

This glossary is a practical reference for Indian retail pharmacy, not legal, tax or clinical advice. Requirements under the Drugs & Cosmetics Rules are enforced by state drug control authorities and vary; GST treatment should be confirmed with your CA. Verify anything you intend to rely on against the current notified position. As of August 2026.