AAR Classifies Homoeopathic Medicaments: Single-Constituent and Multi-Constituent Formulations Both Taxed at 5% GST

Sett Dey and Co. Homoeo Lab, a manufacturer of homoeopathic medicines in West Bengal, approached the Advance Ruling Authority to confirm the correct GST treatment for the products it manufactures. The lab produces a wide range of classical homoeopathic preparations each formulated strictly in line with the First Schedule to the Drugs and Cosmetics Act, 1940 and recognized homeopathic pharmacopoeias from India, the USA, the UK, and Germany. Its portfolio includes both single-ingredient and mixed-ingredient medicaments, all intended for therapeutic or preventive use.

The applicant explained that it had been applying 5% GST to single-ingredient medicines under HSN 30039014 and 12% GST to its multi-ingredient formulations under HSN 30049014.  The jurisdictional officer did not challenge this and left it to the Authority to interpret the tariff entries and rates.

Issue Before GST Authority: What is the appropriate HSN classification and corresponding GST rate for single-ingredient homoeopathic medicaments and multi-ingredient homeopathic formulations manufactured as per pharmacopoeial standards?

AAR Held: The AAR reviewed the amended Schedule I notified through Notification 09/2025-CT(R) dated 19 September 2025. It observed that classical homoeopathic preparations produced strictly in accordance with authorised pharmacopoeias fall under Serial No. 229 when marketed under their recognized names. The Authority also examined the Customs Tariff headings relevant to homoeopathic medicaments. It noted that products not packed in measured doses fall under Tariff Item 30039014, while those supplied in measured doses or retail packs fall under Tariff Item 30049014. Therefore, the AAR held that single-constituent homoeopathic medicaments are classifiable under 30049014 and are liable to GST at the Schedule I rate of 5% (2.5% CGST + 2.5% SGST).

The Authority clarified that for the multi-ingredient medicines the classification depends on how they are packed. When such products are not put up in measured doses or retail sale packs, they fall under HSN 30039014; when they are supplied in measured doses or retail packs, they shift to HSN 30049014. The applicable GST rate for these classical homoeopathic medicaments remains 5% under Schedule I.  The AAR confirmed that the applicant’s entire range of pharmacopoeial homoeopathic products attracts GST at the lower Schedule I rate.

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