Retail Medical Store HSN Code

Understanding the HSN for Retail Medical Store Products

For a retail medical store, understanding the Harmonized System of Nomenclature (HSN) codes is crucial for accurate billing, inventory management, and GST compliance. While there isn’t a single “Retail Medical Store HSN code” that covers all products sold, individual items within the store each have their own specific HSN classification. This blog post will help you navigate the common HSN codes and GST rates for products typically found in a medical store.

Classifying Medical Store Products with HSN Codes

The HSN system organizes goods into chapters, headings, and subheadings. Products found in a retail medical store predominantly fall under Chapter 30, which covers “Pharmaceutical products.” However, other essential items might be classified under different chapters depending on their nature.

Here are some key HSN classifications relevant to a medical store:

• Wadding, Gauze, Bandages, and Similar Articles (Chapter 3005): This is a significant category for medical stores, encompassing items like dressings, adhesive plasters, and poultices. The crucial aspect here is that these products are either:
  • Impregnated or coated with pharmaceutical substances.
  • Put up in forms or packings for retail sale for medical, surgical, dental, or veterinary purposes. Numerous sub-headings exist under 3005, such as:
  • 30051010, 30051020, 30051090: Typically for adhesive dressings and other articles impregnated or coated with pharmaceutical substances.
  • 30059010, 30059020, 30059030, 30059040, 30059050, 30059060, 30059070, 30059090: These cover various other waddings, gauzes, bandages, and similar articles not specifically covered elsewhere, provided they are for retail medical sale.
• Immunological Products (HSN 30021400): This HSN code applies to immunological products that are mixed but not put up in measured doses or in forms or packings for retail sale. While the listed data doesn’t provide a percentage, such products are critical components in medical supplies.
• Medical Grade Oxygen (HSN 28044010): Essential for various medical needs, medical grade oxygen has its specific HSN code under Chapter 28, which deals with inorganic chemicals.

Beyond these directly listed items, a retail medical store also sells:

• Medicines (Pharmaceuticals): Most medicines fall under Chapter 30, with specific HSN codes for different formulations and active ingredients.
• Surgical Instruments: These generally fall under Chapter 90 (Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof).
• Other Medical Devices: Depending on their function, devices like blood pressure monitors, glucometers, etc., will have their own HSN codes, often in Chapter 90.
• Cotton and Textile Products: Items like cotton wool (Chapter 52) and certain synthetic yarns (Chapter 54) may be sold, particularly for medical dressing purposes or as raw materials for certain medical items. For example:
  • Cotton Yarn (Chapter 5205): Various sub-headings like 52052290, 52052320, and 52052420 cover different types of cotton yarn not put up for retail sale.
  • Synthetic Filament Yarn (Chapter 5402): Sub-headings such as 54025200 (polyesters), 54026910 (polyvinyl acetate), and 54026930 (polypropylene) are for synthetic yarns.

Understanding GST Rates for Medical Store Products

The Goods and Services Tax (GST) rates for products sold in a retail medical store vary significantly based on their HSN classification. The objective is to ensure essential medical supplies are taxed appropriately.

Here’s a breakdown of common GST rates for products found in medical stores based on the provided data:

• 12% GST Rate:
  • Wadding, Gauze, Bandages, and similar articles (HSN 3005 and its sub-headings like 30051010, 30051020, 30051090, 30059010, 30059020, 30059030, 30059040, 30059050, 30059060, 30059070, 30059090). These are generally for retail sale for medical purposes.
  • Immunological Products, Mixed, not put up in measured doses or in forms or packings for retail sale (HSN 30021400).
  • Medical Grade Oxygen (HSN 28044010).
• 18% GST Rate:
  • Synthetic Filament Yarn, not put up for retail sale (HSN 5402 and its sub-headings like 54025200, 54026910, 54026930). While these might not be directly sold to consumers in a retail medical store, they could be used in manufacturing other medical goods.
• 5% GST Rate:
  • Cotton Yarn, not put up for retail sale, containing 85% or more by weight of cotton (HSN 5205 and its sub-headings like 52052290, 52052320, 52052420). Similar to synthetic yarn, these might be for manufacturing purposes rather than direct retail sale to consumers.

Most of these GST rates became effective on July 1, 2017, with some revisions or clarifications, such as for medical grade oxygen, occurring on November 15, 2017, and for synthetic filament yarn on October 13, 2017. Retail medical store owners must stay updated on these classifications and rates to ensure compliance.