IEC Code and GST Registration: Why They're Non-Negotiable for Pharma Exporters
When you are evaluating an Indian pharmaceutical supplier for import, two compliance credentials should be on your checklist before any other conversation begins: the IEC (Import Export Code) and GST registration. Both are mandatory under Indian law for exporters — and both are straightforward to verify independently.
This post explains what each credential means, why it matters to you as an international buyer, and how to verify them.
What Is an IEC Code?
The Import Export Code is a 10-digit unique identifier issued by India's Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry. Under India's Foreign Trade Policy, no person or business can legally export goods from India without a valid IEC — with very limited exceptions (such as government entities).
For pharmaceutical exports specifically, the IEC is required for: - Filing shipping bills with customs - Receiving foreign currency payments through authorized banks - Claiming export benefits under DGFT schemes (RoDTEP, etc.) - Registering with export promotion councils like Pharmexcil
What IEC tells you as a buyer: An IEC-holding exporter has been formally registered with DGFT, has gone through basic identity and bank account verification, and is legally authorised to export goods. An exporter without an IEC is operating outside the formal export regime — a significant risk signal. How to verify: The DGFT provides a public IEC search tool at dgft.gov.in. You can search by IEC number or company name to confirm status and registration details.What Is GST Registration and Why Does It Matter for Exports?
GST (Goods and Services Tax) replaced India's earlier indirect tax regime in 2017. Every business with turnover above the threshold (currently ₹40 lakh for goods, with variations) must register for GST. For exporters, GST registration is essentially universal because:- All export invoices must carry the GSTIN (GST Identification Number) - Input tax credit (ITC) on GST paid on inputs can only be claimed and refunded through the GST system — critical for exporters, as exports are zero-rated under GST - Customs authorities link export declarations to GSTIN for compliance monitoring
What GST tells you as a buyer: A GST-registered supplier is in India's formal tax system, issuing compliant tax invoices, and subject to tax authority oversight. Unregistered suppliers — or those with expired/cancelled GST — cannot legally issue valid export invoices, creating compliance exposure for the buyer as well. How to verify: GST registration can be checked on the public GST portal at gst.gov.in → Search Taxpayer → Search by GSTIN/UIN.For Pharmaceuticals: Drug License Is the Third Leg
IEC and GST are business-level credentials applicable to all exporters. For pharmaceutical-specific compliance, you also need to verify the supplier's State Drug License (Form 20/21B for wholesale, Form 20B for retail — issued by the State FDA under the Drugs & Cosmetics Act, 1940).
A pharmaceutical trader without a valid drug license cannot legally purchase, stock, or sell scheduled drugs. This is the pharma-specific compliance layer that sits on top of IEC and GST.
Together, these three form a minimum credential baseline:
| Credential | Issuing Authority | Verifiable Online? | |-----------|------------------|--------------------| | IEC | DGFT | Yes (dgft.gov.in) | | GST Registration | GSTN | Yes (gst.gov.in) | | Drug License | State FDA | Partially (varies by state) |
Bharat Medex's Compliance Status
Bharat Medex holds active IEC and GST registrations. We are happy to share our credentials as part of a supplier qualification process and encourage buyers to independently verify them through the official portals listed above.
Practical Steps for Buyers
Before placing a first order with any Indian pharmaceutical exporter:
1. Request IEC number, GSTIN, and drug license number in writing. 2. Verify IEC on DGFT portal, GST on GST portal. 3. Request a copy of the current drug license (front and back, including validity date). 4. Cross-check drug license against the issuing State FDA database if publicly available. 5. Confirm the license covers the product category you are purchasing (wholesale/retail, specific drug schedules).
This 15-minute compliance check is a basic risk management step that every serious pharmaceutical importer should run.
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Have questions about Bharat Medex's credentials or want to begin a supplier qualification process? Contact us here — we will respond with the documentation you need.
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