GST billing for pharmacies: a simple guide for chemists

GST doesn’t have to mean a late night with the CA every month. Most of the work is getting each bill right at the counter; the returns then almost fill themselves. Here is the plain version. For your specific situation, your CA has the final word.

What every bill should show

• Your shop name, address and GSTIN.
• A unique, serial invoice number and the date.
• For each item: name, HSN code, batch number, expiry date, quantity, rate and discount.
• The GST rate and tax amount for each item, and the total.
• For B2B sales, such as to a hospital or clinic, the buyer’s GSTIN.

HSN codes and rates

Medicines are classified under HSN codes, mostly in chapter 30. Different products can carry different GST rates, and rates on medicines have changed over time, including a revision in 2025. Keep your product master updated with the current rate for each HSN code rather than relying on old bills.

CGST + SGST or IGST?

• A sale within Karnataka: the tax is split equally into CGST and SGST.
• A sale to a buyer in another state: IGST applies.

Input tax credit: don’t leave money behind

The GST you pay on purchases from distributors can usually be set off against the GST you collect, provided the distributor files their returns and the purchase appears in your records. Enter every distributor bill properly, and match it each month.

Returns and records

• File your sales return (GSTR-1) and summary return (GSTR-3B) on time, monthly or quarterly depending on your scheme.
• Keep invoices, purchase bills and stock records for the period the law requires.
• Share a clean sales and purchase report with your CA instead of a box of bills.

Making it automatic

The MedMate Partner console prints GST-ready invoices with HSN, batch and expiry, splits CGST and SGST correctly, tracks input credit from purchase entries, and produces reports you can share straight with your CA.