Maximizing Your Savings: GST and IPD Pharmacies
In India, goods and services tax (GST) is a tax on the supply of goods and services. GST is levied at various stages of the supply chain, from the manufacturer to the final consumer.
In the context of pharmacy, "OPD" stands for "outpatient department," which refers to a medical facility where patients are treated on an outpatient basis, meaning that they do not need to be hospitalized overnight. OPD pharmacies typically sell prescription and over-the-counter medications to patients who visit the facility for treatment.
"IPD" stands for "inpatient department," which refers to a medical facility where patients are treated on an inpatient basis, meaning that they need to be hospitalized overnight. IPD pharmacies typically supply medications to patients who are hospitalized and receiving treatment in the facility.
In India, OPD pharmacies are required to charge GST on the sale of prescription and over-the-counter medications, while IPD pharmacies are not required to charge GST on the supply of medications to patients who are hospitalized and receiving treatment in the facility. This is because the supply of medications to inpatients is considered to be a part of the healthcare service provided by the hospital, and healthcare services are generally exempt from GST in India.
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