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HSN code

The Harmonised System of Nomenclature code that determines a product's GST treatment.

HSN is an internationally standardised classification adopted under GST to identify goods. For a pharmacy, the code that matters most is **3004** — medicaments in measured doses or in forms for retail sale — which covers the overwhelming majority of formulations on the shelf.

Related codes appear occasionally: 3003 for medicaments not in measured doses or retail packing, 3006 for certain pharmaceutical goods and diagnostic reagents, and 3005 for wadding, gauze and bandages. Getting the code right matters because the GST rate follows the classification, and the rate is what appears on the invoice.

Most formulations attract 5% GST, with some products at higher slabs and a set of life-saving drugs at nil. GST rates on medicines were revised in September 2025, so guidance written before that date may quote slabs that no longer apply — a common trap with articles that are otherwise still ranking.

HSN also has to appear on the tax invoice above prescribed turnover thresholds, and it is what a GSTR-1 return is summarised against.

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Related terms

GSTR-1The monthly or quarterly GST return reporting outward supplies — a pharmacy's sales. Credit noteA document issued by a supplier reducing the value of an earlier invoice. PTR (Price to Retailer)The price a stockist charges a retail pharmacy for a pack, quoted exclusive of GST. MRP (Maximum Retail Price)The maximum price at which a pack may be sold to a patient, inclusive of all taxes. CGST, SGST and IGSTThe three components GST is split into, depending on whether a sale crosses a state border.

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.