Same HSN code for two different rates 5% & 12%

Hey! Your doubt is valid and quite common in GST classification.

Explanation:

HSN code 30049011 relates broadly to Ayurvedic medicines. However, the GST rates differ based on the type of Ayurvedic product, even if the HSN code is the same.

• 5% GST: Usually applies to classical Ayurvedic medicines — those made as per the ancient Ayurvedic texts/formulations.

• 12% GST: Usually applies to Patent or Proprietary Ayurvedic medicines — these are modern formulations or proprietary products not strictly following classical texts.

So yes, it is possible for the same HSN code to have two different GST rates depending on the nature of the product (Classical vs Patent).

This is also supported by official GST notifications clarifying that classical medicines are taxed at 5%, while patent/proprietary medicines attract 12%.

What to do in practice?

• Identify whether your product is classical or patent.

• Charge GST accordingly — even if the HSN is same.

• Maintain documentation or proof of classification as per Ayurveda rules and notifications.

Reference:

• GST Council notifications have specified these different rates under the same HSN.

• You may check [GST Notification No. 11/2017-CT(Rate)] and subsequent amendments for exact details.