Input tax credit on transition stock is a question for a chartered accountant.
Book a 20-minute demo and we will show how a rate is set per item and per invoice line.
Ask us on WhatsAppGST 2.0 is not an abstract tax-policy story for a clinic that stocks and bills medicines in-house. It is a line-item change on every pharmacy bill the clinic generates. A tablet that carried 12% GST in August 2025 may now carry 5%, or nil. A diagnostic kit or a glucometer sold at the front desk moved slabs on the same date. If the clinic's billing software still applies the old rate, every affected invoice is wrong from the moment it is printed, whether that means overcharging a patient or under-reporting output tax.
Most finished medicines moved from 12% to 5%, and a named list of life-saving drugs moved to nil.
| Category | Rate before 22 Sep 2025 | Rate from 22 Sep 2025 |
|---|---|---|
| Most finished medicine formulations (tablets, syrups, capsules, etc.) | 12% | 5% |
| Specified life-saving drugs (named list, reported at 33 medicines) | 12% | Nil (0%) |
| Diagnostic kits and reagents | 12% | 5% |
| Blood glucose monitoring systems (glucometers) | 12% | 5% |
| Bandages, gauze, wadding, test strips | 12% | 5% |
| A small number of other pharmaceutical HSN codes | Varies | 18% (unchanged for select items) |
The right rate, on the right HSN code, applied consistently, with a record of what changed and when.
None of this is exotic. It is the same discipline GST already demands. GST 2.0 just moved the numbers.
CuraVerto applies whatever slab is configured, but it does not rewrite your catalog for you.
GST 2.0 refers to the rate rationalisation approved at the 56th GST Council meeting on 3 September 2025 and notified by the CBIC via Notification No. 9/2025-Central Tax (Rate) dated 17 September 2025. The revised rates took effect from 22 September 2025, replacing the earlier 5/12/18/28% structure with a simpler one and moving most items, including most medicines, into lower slabs.
Under GST 2.0, most finished medicine formulations that were taxed at 12% moved to 5% with effect from 22 September 2025. A specified list of life-saving drugs moved from 12% to nil (0%). Not every pharmaceutical HSN code changed; a small number of items remain at 18%, so the correct rate still has to be checked and set per HSN code rather than assumed from the old default.
Yes. The CBIC notification names a specific list of life-saving drugs, reported at 33 individually named medicines, that moved from 12% to nil. This is a named list, not a general category, so a clinic pharmacy needs to check whether a given drug is on that list rather than assume nil-rating applies broadly.
Diagnostic kits, reagents, blood glucose monitoring systems (glucometers), bandages, gauze, and test strips moved from 12% to 5% under the same 22 September 2025 change. These items sit in the same reduced slab as most finished medicines.
When a medicine's output GST rate drops, and especially when it drops to nil, the input tax credit already claimed or available on stock purchased at the old, higher rate can be affected: nil-rated supplies do not carry input tax credit forward the way a 5% taxable supply does. Working out the exact reversal, if any, on transition stock is a question for a chartered accountant, but it is only answerable if the clinic's system can show, item by item, which HSN code changed rate and on what date.
CuraVerto's billing engine does not hardcode a single GST percentage anywhere in the calculation path. CuraVerto lets every catalog item and invoice line carry its own gst_pct and computes CGST/SGST from whatever rate is set on that line, applying 5%, 0%, or 18% per HSN code without any code change. CuraVerto does not, however, retroactively rewrite an existing pharmacy catalog to the new slabs on its own — updating each drug's rate to match GST 2.0 is a data step the clinic (or its onboarding/migration partner) still has to do, HSN code by HSN code.
CGST/SGST computed per HSN code from whatever GST slab is configured on each catalog item, with fiscal-year-aware document numbering built in. Flat annual pricing, no per-doctor fees.
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