Ayurvedic medicine classification determines GST rate through the classical and proprietary distinction under authoritative books and labels. Ayurvedic medicines are classified for GST based on whether they are manufactured according to the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940. Medicines made exclusively in accordance with those books and sold under the corresponding book name are treated as classical medicines and taxed at 5 per cent. Medicines made on self-developed or experiential formulas are treated as proprietary medicines and taxed at 12 per cent, with the label showing the ingredients and quantities used.