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.

Update: this issue no longer arises for current supplies.

• From 22 September 2025, under the rate rationalisation, Ayurvedic, Unani, Siddha and Homoeopathic medicaments (HSN 3003/3004) moved from 12% to 5% (Notf 9/2025-CT(R)). Both classical and patent/proprietary Ayurvedic medicines are now at 5% under 30049011.

• Products sold as cosmetics or toiletries (hair oils, shampoos, toothpaste) are classified under Chapter 33, not 3004, and carry their own rate, even if Ayurvedic.

• For supplies straddling 22 September 2025, the rate depends on the time of supply (Sec 14).

• Pass on the rate cut. Anti-profiteering is now handled by the GST Appellate Tribunal (GSTAT).

• For older periods: the 5% rate under 3004 applied only to specific notified items; most Ayurvedic medicaments were at 12%. Keep the drug licence and classification evidence for audit.