Manufacturing
A pharmaceutical manufacturer's GST invoice should show every product by brand or generic name, strength, dosage form, pack size, batch number, manufacturing and expiry dates, MRP and HSN. Medicaments in measured doses under HSN 3004 are in the 5% schedule from 22 September 2025. The invoice should also carry the manufacturing licence number and the buyer's drug licence details, because distributors and hospitals cannot receive medicines without them.
Download this format free
Pre-filled with pharmaceutical manufacturer sample items and fields. No sign-up.
Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Paracetamol 650 mg tablets, strip of 15, batch PT2510 | 3004 | 5000 STRIP | 18.50 | 92,500.00 | 5% |
| Amoxicillin 500 mg capsules, strip of 10 | 3004 | 3000 STRIP | 42.00 | 1,26,000.00 | 5% |
| Cough syrup 100 ml bottle | 3004 | 2000 BTL | 58.00 | 1,16,000.00 | 5% |
| Pantoprazole 40 mg tablets, strip of 10 | 3004 | 4000 STRIP | 36.00 | 1,44,000.00 | 5% |
| Vitamin B-complex syrup 200 ml | 3004 | 1500 BTL | 72.00 | 1,08,000.00 | 5% |
| Taxable value | ₹5,86,500.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹29,325.00 | ||||
| Invoice total | ₹6,15,825.00 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: HSN Codes and GST Rates for Medicines and Pharma Products · Batch and Expiry Tracking: How to Control Batch-Wise Stock · Credit Note Under GST: When, How and By When to Issue It · E-Way Bill Limit and Rules: When You Need One and When You Don't
Notification 9/2025-Central Tax (Rate) lists medicaments under heading 3004, consisting of mixed or unmixed products for therapeutic or prophylactic uses and put up in measured doses or retail packs, in the 5% schedule. Some specified life-saving drugs are fully exempt under a separate exemption notification. A manufacturer should check each product against both lists and keep the HSN at the level its turnover requires.
Active pharmaceutical ingredients and intermediates are not medicaments in measured doses. They are usually classified under chapters 28 or 29 by their chemical nature, and their rates must be checked separately. A unit making both formulations and APIs must keep separate item masters and invoice lines.
Finished medicines at 5% are made from APIs, excipients, packaging and services, many at 18%. Formulation makers can therefore build up unused credit. A refund of accumulated credit due to inverted rates may be available under section 54(3), subject to any restrictions notified for particular goods.
Physician samples are given free. Input tax credit on goods given as free samples is blocked under section 17(5), so reverse credit related to them. Samples should move on delivery challans or internal documents, not tax invoices, and be recorded in stock books.
Many brand owners have their products made at another company's licensed plant under a loan licence or contract manufacturing arrangement. When the brand owner supplies the materials and the plant only converts them, the plant's invoice is for a manufacturing service on the owner's goods, and the materials move on delivery challans. When the plant buys its own materials and sells finished packs to the brand owner, it is a supply of goods at the medicament rate. The two models produce different invoices, so state the arrangement in the contract and make the invoice description match it, including whose licence the product is made under.
Medicaments under heading 3004 are in the 5% schedule of Notification 9/2025-Central Tax (Rate). Some specified medicines are exempt under a separate notification.
GST rules do not require it, but drug regulations and buyer practice make it standard. Distributors and hospitals use it to verify the product's source.
Issue a credit note against the original invoice when the return is accepted, and record the returned goods. Destroyed goods may also require input tax credit reversal.
Yes, if the consignment value exceeds ₹50,000. Pharma consignments to distributors often exceed this limit.
Free samples are generally not supplies for consideration, but input tax credit on them is blocked. Keep proper records of their movement.
Many manufacturers show the price to retailer or price to stockist alongside MRP so distributors can check margins. GST is charged on the actual transaction value on the invoice, not on the MRP, so the taxable value column must show the price at which you are selling.
Yes, if both go to the same buyer, but show each product on its own line with its HSN and rate. The exempt line carries no tax, and the invoice should make clear which lines are exempt so the buyer's input tax credit is calculated correctly.
Sources: Gazette of India — Notification 9/2025-Central Tax (Rate), G.S.R. 641(E), 17 Sept 2025 · CBIC — GST rates for goods and services
More formats: Agricultural implements manufacturer · Aluminium extrusion manufacturer · Auto parts manufacturer · Biscuit and bakery products manufacturer · Cable and wire manufacturer · Chemical manufacturer · Concrete products manufacturer · Corrugated box manufacturer · all businesses