Health and wellness

GST invoice format for an Ayurvedic medicine store

Ayurvedic medicines are classified with other medicaments under HSN 3003 and 3004, and since 22 September 2025 they are taxed at 5%. An Ayurvedic store's bill must show the AYUSH manufacturing or sale licence details, batch, expiry and the classical or proprietary name of each product. Stores also sell herbal hair oil, soaps, toothpaste and health foods whose rates depend on their own headings, so each line needs its own HSN instead of treating everything herbal as medicine.

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Sample ayurvedic medicine store invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Ashwagandha tablets (bottle of 60)	3004	1 BTL	250.00	250.00	5%
Triphala churna 100 g	3004	2 PCK	90.00	180.00	5%
Dashmularishta 450 ml	3004	1 BTL	210.00	210.00	5%
Herbal hair oil 200 ml	3305	1 BTL	180.00	180.00	5%
Neem toilet soap 75 g	3401	4 PCS	40.00	160.00	5%
Taxable value				₹980.00
GST (CGST + SGST, or IGST if inter-state)				₹49.00
Invoice total				₹1,029.00

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a ayurvedic medicine store invoice needs

Classical or proprietary name: Ayurvedic products are either classical formulations, such as Triphala churna, or proprietary branded products. Showing which one helps classification and lets customers reorder the same item.
Manufacturer's AYUSH licence number: AYUSH medicines carry the maker's licence number on the pack. Recording it on the bill shows the product is a licensed medicine and supports its classification under 3004.
Batch and expiry: Herbal medicines, especially liquid preparations like arishtas, have expiry dates. Batch and expiry on the bill help returns and prove you did not sell lapsed stock.
Pack size and form: Churna, tablet, capsule, oil and syrup forms are priced differently. Including form and pack size, like 100 g or 450 ml, avoids confusion at refills.
Vaidya's prescription reference: Where a customer buys on a vaidya's prescription, noting the practitioner helps with reimbursement claims and keeps a record for repeat purchases.
MRP and discount: Like other medicines, Ayurvedic products carry a tax-inclusive MRP. Showing MRP, discount and net rate makes clear the price never exceeded MRP.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a ayurvedic medicine store

Ayurvedic medicines are 5% from 22 September 2025

The rate notification for headings 3003 and 3004 expressly includes Ayurvedic, Unani, Siddha, homoeopathic and Bio-chemic medicaments. All of these moved from 12% to 5% in the September 2025 rationalisation. This rate applies whether the product is a classical formulation or a branded proprietary medicine, as long as it is a medicament for therapeutic or prophylactic use. Update your item masters and print the new rate on bills from that date.

Medicine or cosmetic: classification decides the rate

Many herbal products sit on the border between medicine and cosmetic or food. A product sold for treating a condition, made under an AYUSH drug licence and labelled with therapeutic use, is usually a medicament under 3004. A herbal face cream or shampoo sold for everyday care is classified as a cosmetic or toilet preparation. Hair oil, shampoo, toothpaste and toilet soap are now at 5%, but other cosmetic products may still be at 18%. Check the pack licence and label before deciding.

Health foods and herbal teas

Stores also stock items such as honey, herbal teas, chyawanprash-type products and supplements. Classification of these has been disputed over the years. Use the HSN and rate shown on the manufacturer's tax invoice to you, because the rate you charge should follow the classification your supplier applied. If your supplier classifies an item as a food, do not bill it as a medicine.

Composition scheme for small herbal stores

A small Ayurvedic store with turnover up to ₹1.5 crore can opt for the composition scheme at 1% of turnover and issue bills of supply without tax. This suits shops selling mainly to individuals. Stores that also supply Ayurvedic clinics and panchakarma centres may prefer regular registration, though those clinics run exempt treatment and usually cannot use the credit anyway.

Licences printed on the bill

Selling AYUSH medicines is regulated under the Drugs and Cosmetics Act rules applicable to Ayurvedic, Siddha and Unani drugs. Print your shop's licence details, if your state requires one, and your GSTIN in the bill header. If you also sell packaged food items, an FSSAI registration number on the bill is expected.

Returns of expired herbal stock

Ayurvedic distributors take back expired churnas and syrups under varying policies. If the distributor issues a credit note with GST, reduce your input tax credit for that month. If the distributor only gives a financial credit without tax, your credit stays as claimed. Write the batch and expiry on the return note so stock, tax and supplier ledgers agree.

Common billing mistakes

Billing all herbal products at one rate without checking whether each is a medicine, cosmetic or food.
Continuing to charge 12% on Ayurvedic medicines after the 22 September 2025 cut to 5%.
Ignoring expiry on arishtas and asavas, which do expire despite the belief that they improve with age.
Charging a higher rate than the supplier's invoice classification without any basis.

Ayurvedic medicine store GST invoice: FAQ

What is the GST rate on Ayurvedic medicines?

Ayurvedic medicaments under HSN 3003 and 3004 are taxed at 5% from 22 September 2025. The same rate applies to Unani, Siddha and homoeopathic medicines.

What HSN code is used for Ayurvedic medicines?

HSN 3004 for medicines put up in measured doses or retail packs, and 3003 for those not put up for retail sale. Many invoices use 8-digit codes under 3004 90 for Ayurvedic products.

Is herbal hair oil taxed like an Ayurvedic medicine?

Hair oil sold for daily use is classified under 3305 and is now at 5%. A medicated oil sold for treating a condition under a drug licence may be a medicament under 3004, also at 5%.

Does an Ayurvedic store need a drug licence?

Requirements vary by state for AYUSH medicines. Check with your state's AYUSH or drug control office, and print any licence you hold on your bills.

Sources: GST Council — PIB press release on 56th Council rate rationalisation (3 Sep 2025) · CBIC — Tax information portal (rate and exemption notifications)

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