What are the GST Rates for Pharma Products in the PCD Pharma Franchise Business? If you’re planning to start a PCD pharma franchise business in India in 2025, then it is important to understand the latest GST rules and prices for pharmaceutical products. The GST rates for pharma products in the PCD pharma franchise business range from 0% to 18%, depending on the type of products. Most common medicines and essential drugs now come under the Nil (0%) GST rate, making them more affordable for consumers. Some specific medicines or products may have different rates, like 5% and 18%, which depend on their type.
These GST changes, especially those implemented after September 2025, have made it easier for pharma distributors and franchise owners to manage their business, reduce paperwork, and offer medicines at better prices. The government has made key changes to GST rates that directly impact medicine prices, franchise profitability, and how pharma companies operate. Here we will discuss “What are the GST Rates for Pharma Products in the PCD Pharma Franchise Business?”
Latest GST Rates for Pharma Medicines for PCD Pharma Franchise in 2025
For a successful pharma business, understanding the GST rate is very important for PCD pharma franchise owners, as it affects pricing, margins, and compliance. Here’s a simple breakdown of the new rates for different pharma products in 2025:
Nil GST Rate (0%) for Pharma Products
The government has now placed 37 life-saving and essential medicines, which are used in the treatment of Cancer, Rare genetic disorders, Chronic illnesses, and Severe cardiovascular conditions, in the 0% GST slab, which means they are completely tax-free. This helps keep these critical treatments affordable and available for everyone who needs them. Here are some pharma products that come in the 0% GST slot.
- Agalsidase Beta
- Imiglucerase
- Onasemnogene abeparvovec
- Asciminib
- Mepolizumab
- Pegylated Liposomal Irinotecan
- Daratumumab
- Teclistamab
- Amivantamab
- Alectinib
- Risdiplam
- Obinutuzumab
- Polatuzumab vedotin
5% GST Rate for Pharma Products
Most important medicines, like common antibiotics, painkillers, other widely used medicines, and Active Pharmaceutical Ingredients (APIs), are taxed at a low 5% GST rate. This makes everyday medicines more affordable and keeps the tax process simple. Here are a few pharma products on which 5% GST is levied.
- Human or animal blood vaccines
- Oral Rehydration Salts (ORS)
- Insulin (for diabetes management)
- Cyclosporin (used after organ transplants)
- Diagnostic kits (like Hepatitis test kits)
- Deferiprone medicine
- Desferrioxamine injection
- Ayurvedic, Unani, Siddha, Homeopathic medicaments
- Diagnostic kits
- Medical instruments
18% GST Rate for Pharma Products
Some other medical products, such as nutritional supplements, herbal tonics, and some specialty healthcare products, are taxed at 18%.Some medical equipment and tools that are necessary in the medical field may also attract this rate, but many were reduced to 5% recently. Here’s the list of pharma products that usually fall under the 18% GST rate in India:
- Dental equipment
- Orthopedic devices
- Digital scanners
- Advanced monitoring machines
- Cosmetics creams, gels, or lotions
- Advanced prosthetics
Easy-to-understand Table of GST Rates for Pharma Products in 2025
| GST Rate | Applicable Products | Examples | Reason / Note |
| 0% (Nil) | 37 Life-saving drugs and essential medicines | Vaccines, blood products, anti-cancer drugs, certain therapeutic medicines | Ensures critical treatments remain affordable and accessible |
| 5% | Most essential medicines and Active Pharmaceutical Ingredients (APIs) | Common antibiotics, painkillers, fever medicines, and standard tablets | Keeps essential medicines affordable for general use |
| 18% | Health supplements, vitamins, and certain specialized or non-essential products | Nutritional supplements, herbal tonics, specialty dietary products | Higher rate for non-essential or specialized healthcare items |
Why GST Is Important for a PCD Pharma Franchise?
Goods and Services Tax (GST) is very important in every business, also in the pharma sector, which has a different effect on the sale, price, and distribution of products. If you are also a PCD pharma investor, then know that the GST for pharma products in the PCD pharma franchise is important for you. Now the government has made many changes in GST prices, and essential drugs are kept in lower tax slabs so they remain affordable for everyone.
GST not only simplifies business for pharma companies but also builds trust with doctors, distributors, and patients by keeping things clear and consistent. By knowing the right GST rates, franchise owners can set fair prices and have full transparency with customers. Now you can understand the impact of GST on the PCD pharma franchise business and how the business runs.
Pricing Strategy
Knowing the right GST rate helps you fix product prices that are both competitive in the market and still profitable for you.
Profit Margins
GST changes the cost structure. Products with lower GST, like essential medicines, allow franchise owners to enjoy better profit margins.
Compliance
Staying updated about GST rates makes sure your business follows the rules properly and avoids any legal issues or penalties.
Market Advantage
Promoting products that fall under lower GST rates can attract more customers, as they are more affordable and pocket-friendly.
In Conclusion
We believe that understanding GST is not just about compliance, but it’s about running a smarter and more successful pharma business. By staying updated on the latest GST rates for different medicines, our franchise partners can plan better, set the right prices, and ensure smooth business operations. With the right knowledge and guidance, you can focus on growth while we support you with high-quality products and a transparent business model. For more information about pharma products and their GST prices, you can contact Cinerea Biotech.
