To sell ayurvedic products online in India, first work out which legal category each product falls into: an Ayurvedic drug made under a state licence, an Ayurveda Aahara food regulated by FSSAI, or a cosmetic or general wellness item. Each category has its own licence, label and advertising rules, and none of them lets you promise a cure for a listed disease.
This guide sorts products into those categories, explains the manufacturing licence path and what the Act says about selling these drugs, lists what a label and an online product page must show, sets out what you cannot claim, and explains how the Rule 170 advertising dispute ended. It also gives audit tables, a supplier checklist, a contract outline and two illustrative scenarios. Rules were read on official pages on 12 and 16 October 2026.
Quick answer: To sell ayurvedic products online in India, make sure every product is made by a licensed manufacturer, carries a compliant label, and is described without cure or treatment claims for the diseases listed in the Drugs and Magic Remedies Act. Keep the licence details on file, show only substantiated, general wellness statements, and follow the FSSAI route if a product is a food.
Three product categories, three rulebooks
Ayurvedic products do not share a single rulebook. The first step is to put every item in the right box, because the licence, label and claim rules differ.
| Category | Typical examples | Main regulator and law | What to check first |
|---|---|---|---|
| Ayurvedic drug (classical or proprietary medicine) | Churna, vati, asava, tailam, patent or proprietary formulations | State licensing authority under the Drugs and Cosmetics Act, 1940 and Rules, 1945; Ministry of Ayush | Manufacturing licence, label under Rule 161, advertising limits |
| Ayurveda Aahara (food) | Foods made from recipes in listed Ayurveda texts | FSSAI under the Ayurveda Aahara Regulations, 2022 | FSSAI licence or approval, label rules, no disease claims |
| Cosmetic or personal care | Herbal face packs, hair oils sold as cosmetics | Cosmetics Rules, 2020 under the Drugs and Cosmetics law; consumer law | Whether the product is really a cosmetic, label and claims |
| Other wellness goods | Accessories, books, tools, incense | General consumer law | Avoid health claims that turn them into drugs |
A product's legal category depends on its ingredients, its intended use and how it is described, not on the word "ayurvedic" on the pack. The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 defines a drug widely. Its text, published by India Code as on 15 April 2026, includes any substance intended for the diagnosis, cure, mitigation, treatment or prevention of disease, and any article other than food intended to affect the structure or any organic function of the body. A cream sold with a health promise can therefore be treated as a drug in the advertising law even if you consider it a cosmetic.
For background on the system itself, Wikipedia's articles on Ayurveda, the Drugs and Cosmetics Act, 1940 and the Drugs and Cosmetics Rules, 1945 give neutral overviews. The statutes and notifications are the authority for anything you act on.
Deciding which category a product belongs to
Sellers often inherit a catalogue from a supplier and never ask the category question. The table below is a working aid. Where two rows seem to fit, apply the stricter category, and take from the licensed manufacturer the category named on its licence.
| Signal on the pack or page | Points toward | Why it matters |
|---|---|---|
| Classical dosage form (churna, vati, ghrita, asava) with directions for use and a manufacturing licence number | Ayurvedic drug | State licence, Rule 161 label, 1954 Act advertising limits |
| Sold to be eaten as part of a diet, with a recipe drawn from a listed text | Ayurveda Aahara food | FSSAI licence or approval; label states purpose, target group and duration |
| Applied to skin or hair, described as cleansing, beautifying or fragrancing | Cosmetic | Cosmetics Rules, 2020; claims must not be false or misleading |
| Applied to skin or hair, described as treating a skin disease or hair loss condition | Likely a drug claim | Description can pull a cosmetic into the drug definition and the 1954 Act |
| A tea or jam promoted for "blood sugar" or "immunity" | Food with a disease-type claim | Food label rules and the 1954 Act both become relevant |
| A copper tongue cleaner, a diffuser, a book on Ayurveda | General goods | No drug licence, but health promises still create exposure |
Two practical consequences follow. First, one SKU gets one category, and every document you hold (invoice description, label, product page, listing on a marketplace) should use it consistently. Second, if the manufacturer cannot say plainly which licence covers the product, treat that as a warning about the supplier, not as a paperwork gap you can fix later.
Sell ayurvedic products online in India: who needs which licence
The licence question has two sides: who makes the product and who sells it. Under the Drugs and Cosmetics Rules, 1945, manufacture for sale of Ayurvedic, Siddha and Unani drugs is licensed by the state licensing authority. Rule 152 of the Drugs and Cosmetics Rules, 1945, as printed in the CDSCO-hosted text, provides that the State Government appoints the Licensing Authorities for this purpose. The Ministry runs the e-Aushadhi portal for licence processing. On 12 October 2026 its landing page listed these notices: applicant registration open from 16 April 2026 with every user required to register afresh, fresh licence applications for Ayurveda, Siddha, Sowa-Rigpa and Unani drugs open from 28 April 2026, a legacy module from the same date for existing licence holders to enter past approval data, and guidelines dated 1 June 2026 on mandatory processing of licence-related activities through the portal.
That gives three practical routes for a seller.
- You manufacture. You need your own manufacturing licence for each product category, with premises and practices that meet the GMP schedule, and you carry the compliance burden in full.
- You use a contract manufacturer. The licensed manufacturer makes the product, and your brand appears as the marketer. You must hold evidence of its licence and permitted products, and your agreement should cover labels, batch records and recalls.
- You resell finished products. You buy from a licensed manufacturer or distributor and sell on. You still carry responsibility for what you say about the product and for storing it as the label directs.
Whichever licence number a manufacturer quotes, copy it from the licence document itself, because Rule 161(3)(iv) requires the number to appear on the label after the words "Manufacturing Licence Number", "Mfg. Lic. No." or "M.L.".
What the Act says about selling these drugs
Chapter IVA of the Drugs and Cosmetics Act, 1940, as printed in the CDSCO-hosted text, regulates Ayurvedic, Siddha and Unani drugs, and it works through the manufacturer. Section 33EEC bars manufacture for sale or distribution of misbranded, adulterated or spurious drugs, bars manufacture of a patent or proprietary medicine unless the true list of ingredients is displayed on the label, and bars manufacture except under a licence issued by the prescribed authority. It applies from the date a State Government specifies by notification in its Official Gazette.
The same section also bars any person from selling, stocking, exhibiting, offering for sale or distributing an Ayurvedic, Siddha or Unani drug that was manufactured in contravention of the Act or its Rules. For a seller, the working consequence is direct: every drug you list must come from a manufacturer holding a licence that covers it, so the licence copy and the label are the first two documents in your product file. Selling across states does not change that rule; it only means more than one State Licensing Authority may have an interest in the manufacturer.
What the manufacturing licence process looks like
For a manufacturer or a brand owner who commissions production, it helps to know the shape of the process. Under Rule 153 an application for the grant or renewal of a licence to manufacture for sale any Ayurvedic (including Siddha) or Unani drugs is made in Form 24-D to the Licensing Authority, and under Rule 154 the licence is issued in Form 25-D, as printed in the CDSCO-hosted text of the Rules. The e-Aushadhi landing page, read on 12 October 2026, lists the portal notices described above, which now carry licence processing.
For a seller using a contract manufacturer, the practical questions are simple. Is the licence current? Does it list this product? Is the premises address the same as on your label? Who holds batch records, and how fast can you get them if a regulator or customer asks?
Vetting a contract manufacturer: a scoring sheet
A licence copy is the minimum, not the test. The sheet below turns supplier due diligence into a score you can compare across two or three candidates. Score each line 0 (absent), 1 (partly) or 2 (fully, with a document). The weights and cut-offs are our own illustrative choices, not a regulatory standard.
| Check | Evidence to ask for | Score (0-2) |
|---|---|---|
| Licence is current and issued to the producing premises | Licence copy, address matched to label | |
| Licence lists the product or product type | Licence page or schedule of products | |
| Formulation matches a named classical text or a documented proprietary formula | Formula sheet, text reference | |
| Raw material identity and quality records | Supplier lists, test reports the manufacturer is willing to share | |
| Batch records and retention samples | Written statement of retention practice | |
| Label approved by the manufacturer and consistent with the Rules | Artwork proof signed by both parties | |
| Recall and complaint handling | A named contact and a written procedure | |
| Notice of licence or regulatory change | A contract clause (see template below) |
With eight lines and a maximum of 2 each, the top score is 16. As a working rule, we would not proceed below 12 of 16, and we would treat any 0 on the first two lines as a stop sign regardless of the total. The point is not the arithmetic; it is to force each answer onto paper before you place a first order.
A contract outline you can adapt
The outline below is a starting list of contract topics. It reflects the questions a brand owner should want answered.
- Parties and premises. Legal names, licence numbers and the exact manufacturing address.
- Products covered. Each SKU, its formulation reference and its licensed category.
- Label responsibility. The manufacturer supplies and warrants regulatory label content; the brand owner owns marketing copy and agrees it will not go beyond the label.
- Change notice. Written notice within a fixed number of days of any suspension, cancellation, inspection finding, formulation change or regulatory notice.
- Batch records and samples. Retention period and the time within which records will be shared on request.
- Recall. Who decides, who pays and how customers are told.
- Complaints. Adverse-event reports forwarded to the brand owner within a set time.
- Exit. Return of artwork files and unsold stock if the relationship ends.
Label rules: what has to be on the pack
Rule 161 of the Drugs and Cosmetics Rules governs labels of Ayurvedic (including Siddha) and Unani drugs. The CDSCO-hosted text of the Rules, as read on 16 October 2026 (the print states it is amended up to 31 December 2016), sets out the following.
- Ingredient list. Rule 161(1) requires the true list of all ingredients, with the botanical names of plant-based ingredients, the plant part and form used, and the quantity of each, together with a reference to the method of preparation in the authoritative texts in the First Schedule. If the list is too long for the label, it may be printed separately and enclosed with the pack, with a reference on the label.
- Caution statement. Under Rule 161(2), the container of a medicine for internal use made up ready for the treatment of human ailments, if made from a substance specified in Schedule E(1), must carry the words "Caution: To be taken under medical supervision" in English and Hindi.
- Particulars in indelible ink. Rule 161(3) lists what must appear conspicuously on the innermost container and any other covering: the name of the drug as in the First Schedule texts; a correct statement of net content in metric units; the manufacturer's name and address; the manufacturing licence number with its prefix; a distinctive batch number; the date of manufacture; the words "Ayurvedic medicine", "Siddha medicine" or "Unani medicine"; and "FOR EXTERNAL USE ONLY" for external application.
- Expiry. Rule 161B requires the date of expiry to be conspicuously displayed, and says that after that date the medicine shall not be in circulation. It sets shelf lives by group, for example 2 years for churna, 3 years for taila and 2 years for ghrita, counted from the date of manufacture.
Copy this information from the manufacturer's approved label onto your product page, field by field. Your product page is also an "advertisement" in the sense of the 1954 Act, which defines the word to include any notice, circular, label, wrapper or other document. A claim printed on your page therefore falls under the same advertising limits as one printed on the pack.
Packaged-commodity declarations on an online page
Separately from drug labelling, the Legal Metrology (Packaged Commodities) Rules, 2011 apply to pre-packaged goods, and they reach online sales. The Legal Metrology Act, 2009, administered by the Department of Consumer Affairs, regulates trade in goods by weight, measure or number. A law-firm summary of compliance for e-commerce websites attributes to Rule 6(10) the duty on an e-commerce entity to display on its digital network the declarations required under Rule 6(1). A Lok Sabha answer, as summarised in a trade news report on amendments to the Rules, describes the 2017 amendment effective 1 January 2018.
The declarations reported in those sources are the manufacturer, packer or importer's name and address, the common or generic name of the commodity, net quantity, the month and year of manufacture, maximum retail price inclusive of all taxes, country of origin and consumer care details, with a best-before or use-by date for goods that can become unfit for consumption.
The practical lesson is that the product page should be a faithful copy of the pack, not a creative rewrite. Photograph the back panel, and show the declarations in text so a customer, a regulator or a search engine can read them. If a page shows a price that differs from the MRP declared on the pack, resolve it before listing.
What you cannot claim: the 1954 Act in plain terms
The Drugs and Magic Remedies (Objectionable Advertisements) Act is short and direct. Section 3 says no person shall take any part in the publication of an advertisement referring to a drug in terms that suggest or are calculated to lead to its use for four purposes: procuring miscarriage or preventing conception in women, maintaining or improving the capacity for sexual pleasure, correcting menstrual disorder in women, and the diagnosis, cure, mitigation, treatment or prevention of any disease, disorder or condition in the Schedule. Wikipedia's article on the 1954 Act gives a readable summary, including its 1963 amendment and the Central Government's power to amend the Schedule.
The Schedule lists 54 entries. Among them, as printed in the India Code copy, are cancer, diabetes, epilepsy, glaucoma, heart diseases, high or low blood pressure, obesity, paralysis, rheumatism, sexual impotence, sterility in women, tuberculosis and tumours, along with broader headings such as disorders of the nervous system and "fevers (in general)". The list is old and some entries are broad, which is a reason to be careful, not a reason to argue the edges.
Section 4 is wider. It bars any advertisement relating to a drug that directly or indirectly gives a false impression about the drug's true character, makes a false claim, or is otherwise false or misleading in a material particular. Section 7 sets the penalty: for a first conviction up to six months' imprisonment, a fine or both, and for a later conviction up to one year, a fine or both. Section 9 extends liability to a company and the persons in charge, and section 9A makes the offences cognizable.
Words matter as much as claims. "Cures diabetes" is the obvious breach. "Supports healthy blood sugar" still refers to a Schedule condition and invites the same reading. "Traditionally used for digestion" is a different kind of statement, but it still must be true and must not mislead.
A claim audit you can run on every listing
Use a three-column audit before publishing. Write each sentence of your title, bullets, description, FAQ and image text in the left column. In the middle, ask which of the four section 3 purposes it points at, and whether it names or implies a Schedule condition. On the right, write the evidence behind the statement, such as a classical text reference, a manufacturer's dossier or a clinical publication. The table below shows how a few sample sentences would be scored; the sentences are illustrative, not approved wording.
| Sample sentence (illustrative) | Risk under the 1954 Act | Reason | Safer approach |
|---|---|---|---|
| "Cures diabetes naturally" | High | Names a Schedule condition and a cure | Remove; do not imply the condition at all |
| "Reduces high blood pressure" | High | Schedule entry and a treatment claim | Remove |
| "Boosts male stamina and performance" | High | Points to sexual capacity under section 3(b) | Remove |
| "Clinically proven" | High unless evidence is held | A false claim falls under section 4 | Only if you hold and can produce the study |
| "100% safe, no side effects" | High | Absolute claims are hard to substantiate | Give directions and cautions instead |
| "Made to a classical formulation described in [text]" | Lower | A factual statement about origin | Cite the text accurately |
| "Traditionally taken after meals" | Lower | Describes use, not an outcome | Keep to the label's directions |
Do not rely on a tiny disclaimer at the bottom. The Central Consumer Protection Authority's guidelines page lists, among others, the 2022 guidelines for prevention of misleading advertisements and endorsements, and a Nishith Desai Associates analysis of those guidelines summarises how exaggeration, hidden disclaimers and unsubstantiated claims are treated for any advertiser.
Rewriting copy: from outcome to description
The audit tells you what to remove. The harder skill is writing a page that remains useful without the forbidden sentence. The pattern is to replace outcome language with four kinds of fact: what it is, what is in it, how it is traditionally used, and how to take it safely.
| Draft line (illustrative) | Problem | Rewrite pattern |
|---|---|---|
| "Controls sugar levels in 30 days" | Schedule condition, time-bound outcome | "Polyherbal churna prepared as per [text]. Directions: as printed on the label." |
| "Cures hair fall" | Cure claim; may move a cosmetic into drug territory | "Herbal hair oil with [listed ingredients]. For external use only." |
| "Doctor recommended" | Unverifiable endorsement | Omit, or name the practitioner with written consent and a verified registration |
| "Pure and 100% natural" | Absolute claim | List ingredients exactly as on the label |
| "Boosts immunity" | Vague health outcome; not tied to evidence | Describe traditional use only if you can cite the text |
| "No chemicals" | Misleading in a scientific sense | State what is and is not in the formulation |
A useful editorial rule is that every sentence on the page should be traceable to one of three documents: the approved label, the manufacturer's formulation sheet, or a text you can name. If a sentence traces to none of them, it is marketing, and marketing is where the risk sits.
Reviews, influencers and social posts
A claim does not stop being a claim because someone else wrote it. A customer review saying "cured my diabetes" published on your page becomes part of your advertisement under the wide definition of the word in the 1954 Act. The same reasoning applies to a creator you pay or send free product to, and to your own Instagram captions and WhatsApp broadcasts. Our guides on Instagram selling versus an online store and moving from Instagram to your own store explain why a store page gives you more control over wording than a feed does, but control is only useful if you exercise it.
Build a short brief for any creator: supply the approved description, forbid disease and outcome claims, require them to use only photographs and statements you have cleared, and keep a record of what they posted. The CCPA's misleading-advertisement framework also contemplates liability for endorsers, so a creator who is careless can create exposure for both of you.
The Rule 170 dispute and where it stands
Many sellers have heard that Ayurvedic ads need approval before publication. That was Rule 170 of the Drugs and Cosmetics Rules, inserted in 2018, which required the state licensing authority's approval for advertisements of these drugs. According to a Bar and Bench report, the Ministry of Ayush omitted Rule 170 on 1 July 2024, the Supreme Court stayed that omission in August 2024, and on 11 August 2025 the Court vacated its stay and disposed of the petition, allowing the parties to approach the High Court if aggrieved. The report quotes the Court observing that relief sought had already been achieved.
That report is a news account. It does not mean advertising is unregulated. The 1954 Act applies independently of Rule 170, and so do the CCPA's rules on misleading advertising. Treat the removal of pre-approval as a change in process, not a loosening of the limits above. If you receive a notice from a state authority, respond within the time it states.
Consumer Protection Act exposure
Beyond the 1954 Act, the Consumer Protection Act, 2019 gives the CCPA power over false or misleading advertisements. Wikipedia's article on the Consumer Protection Act, 2019 records that the CCPA came into force on 24 July 2020. A law-firm paper on advertisers and endorsers under the Act, reports section 21 penalties of up to ten lakh rupees on a manufacturer or endorser, up to fifty lakh rupees for each subsequent contravention, and a bar on an endorser of up to one year, extendable on repeat contraventions. It also reports a due-diligence defence for endorsers and an ordinary-course-of-business defence for a publisher, lost if the publisher knew of a CCPA order.
These figures are the CCPA's civil powers, separate from the criminal penalties in section 7 of the 1954 Act.
Online-specific rules: platforms, prescriptions and consumer law
Medicines made from Schedule E(1) substances carry the bilingual medical-supervision caution under Rule 161(2) described above, so show that caution on the product page as well as the pack.
The Consumer Protection (E-Commerce) Rules, 2020 were amended in September 2026. The PIB release of 10 September 2026 on the E-Commerce (Amendment) Rules, 2026 says the amended rules come into force from 1 January 2027 and cover price-reduction display, dark patterns and, for marketplaces, details such as best-before dates, warranty and delivery. Build product pages to meet them, with expiry or best-before dates, directions, return terms and a grievance contact.
Selling on a marketplace adds a further layer, because each marketplace sets its own category approvals and prohibited-claims policies. Read the current policy on its seller pages before uploading. Our guide to GST compliance for ecommerce sellers covers the tax side.
When the product is food: the FSSAI route
If a product is a food, such as a spiced mix, a herbal tea or a jam described as Ayurvedic, it falls under food law. The Food Safety and Standards (Ayurveda Aahara) Regulations, 2022, summarised by Vikaspedia, cover food made from recipes or processes in listed Ayurveda texts. A compliance article on Ayurveda Aahara and a Gazette summary report that the regulations were published in May 2022, that the category excludes Ayurvedic drugs, proprietary Ayurvedic medicines, cosmetics and herbs, that products need FSSAI licence or approval before sale, and that the label must state intended purpose, target consumer group and duration of use. Disease claims are not permitted, though risk-reduction claims can go through the approval process in the regulations.
Food sellers also need an FSSAI licence or registration, depending on scale; the regulator's site is fssai.gov.in, and licence applications run through its FoSCoS portal. The point to remember is that the same product cannot sit in both categories. A pack that says "ayurvedic medicine for joint pain" on the label and "food supplement" on the invoice invites trouble from both regulators.
When the product is a cosmetic
Cosmetics have their own rules under the Drugs and Cosmetics law. CDSCO's cosmetics page, read on 12 October 2026, says manufacturing is regulated through inspection and licensing by State Licensing Authorities and imports through registration with the Central Licensing Authority. It also quotes the Cosmetics Rules, 2020 as saying that a cosmetic may not claim or convey any idea that is false or misleading to the intending user. The central regulator's main site is CDSCO.
Keep your listing within the category the manufacturer's licence covers. A herbal face pack with a cosmetic licence should not be sold with a promise to treat acne or eczema; that is a treatment claim, and it blurs the line the licence draws.
Build a product record before you publish
For every SKU, keep a short file you can produce in a day. The file should hold the manufacturer's licence number and validity, the licence page showing the product, the approved label artwork, the formulation as supplied, test reports the manufacturer shares, batch and expiry practice, your claim audit, and the date you last checked the rules. A seller who can hand over this file calmly is in a better position than one who has to ask the manufacturer in a hurry.
Add a line in your supplier agreement that the manufacturer will notify you of any change to licence status, a recall or a regulatory notice. Add another that it will bear responsibility for label content that it supplies, while accepting that you remain responsible for your own marketing copy.
| Document | Where it comes from | Review cycle (suggested) |
|---|---|---|
| Manufacturer licence and product listing | Manufacturer | At each reorder and on any notice |
| Approved label artwork | Manufacturer and you, signed | On any label change |
| Formulation sheet | Manufacturer | On any change |
| Claim audit | You | Whenever copy changes, plus quarterly |
| Review moderation log | You | Weekly |
| Batch and expiry register | You and manufacturer | Each batch received |
A worked example: auditing a listing and its reviews
Imagine a store selling a polyherbal churna from a licensed contract manufacturer. The draft page says: "Ancient formula to cure sugar problems. Clinically proven. No side effects. Take twice daily." The manufacturer's label says the churna is a traditional preparation for digestive support, lists ingredients and gives directions.
Applying the audit: "cure sugar problems" points at diabetes, a Schedule item, and uses the word cure, so it goes. "Clinically proven" needs a study the seller does not hold, so it goes. "No side effects" is an absolute claim, so it is replaced by the label's cautions. "Ancient formula" is fine only if the seller can name the text. "Take twice daily" is kept only if it matches the label's directions. The revised page repeats the label's description, ingredients, directions, cautions, shelf life and manufacturer details, adds the licence information the label carries, and states that the product is not a substitute for medical advice.
Now add the reviews, using ASSUMED figures. Suppose the page has 250 reviews, and a first read finds that 8% mention a disease or a cure. That is 250 x 0.08 = 20 reviews. If each takes about 3 minutes to assess and edit or decline to display, the one-off clean-up is 20 x 3 = 60 minutes. If new reviews arrive at 15 a week and the same 8% share holds, about 1.2 reviews a week need action, roughly 4 minutes weekly at the same rate. The numbers are invented for planning; the lesson is that moderation is a small, regular task, and that leaving it undone means a growing pile of unreviewed claims on your own page.
The result is a shorter page and a less dramatic one. That is the intended trade: a smaller promise you can stand behind.
Illustrative scenario: a coconut-oil brand in Kerala
Illustrative scenario, with invented details. A small producer in Kerala makes a herbal hair oil in its own premises and sells it through a branded store. The owner believes the oil is a cosmetic, but the product page says it "stops hair loss and cures dandruff". Reading the cosmetics page of CDSCO and the 1954 Act definition of a drug, the owner sees two problems: the claims go beyond cosmetic territory, and the premises hold a cosmetic licence at most, if any. The owner sets the oil's licence against its category, and rewrites the page to describe the oil as a herbal hair oil with listed ingredients, directions and "for external use". The back label photograph, the Legal Metrology declarations and the batch month and year are copied into the page. The lesson is that category came first, copy came second.
Illustrative scenario: a herbal tea seller in Pune
Illustrative scenario, with invented details. A seller in Pune markets a "digestive tea" blend that a friend makes at home. The friend has no FSSAI registration, and the pack carries an "ayurvedic remedy for acidity" line. The seller realises the product is a food, the home-based producer is unlicensed, and "remedy for acidity" is a treatment claim. The seller pauses the listing, asks the producer to obtain the appropriate FSSAI registration or licence, and relabels it to the food format, with the purpose, target group and duration of use stated for an Ayurveda Aahara product. Until the paperwork exists, the seller does not sell.
Mistakes and how to avoid them
- Assuming "herbal" means "exempt". A herbal product can still be a drug, a food or a cosmetic in law. Fix: ask the manufacturer which licence covers it.
- Copying a competitor's page. Their claims are not a defence, and their evidence is not yours. Fix: write from your own label and formulation sheet.
- Treating the end of Rule 170 as a free pass. The 1954 Act and consumer law still apply. Fix: keep the claim audit.
- Using a disclaimer to cancel a claim. A footnote does not undo a headline. Fix: remove the claim.
- Leaving reviews unmoderated. Fix: schedule a weekly check and keep a log.
- Mixing categories on documents. A food on the invoice and a medicine on the label. Fix: one SKU, one category, everywhere.
- Not checking the licence validity at reorder. Fix: log the licence date on each purchase order.
- Selling a drug from a source without a licence. Fix: take the manufacturer's licence copy before the first order.
Checklist: before you sell ayurvedic products online
- Each product is placed in a legal category: Ayurvedic drug, Ayurveda Aahara food, cosmetic or other.
- I hold a copy of the manufacturer's current licence and the page showing my product.
- Every drug I list is made by a manufacturer whose licence covers it, in line with section 33EEC of the Act.
- Label artwork is the manufacturer's approved version, with ingredients, directions, cautions and shelf life.
- The product page shows the packaged-commodity declarations from the pack, including MRP, net quantity and manufacturer details.
- Internal-use medicines made from Schedule E(1) substances carry the bilingual medical-supervision caution under Rule 161(2).
- No title, bullet, image, review or social post refers to a Schedule disease or implies a cure.
- Every "proven", "pure", "safe" or "traditional" statement has evidence on file.
- Food items hold the right FSSAI licence and use the food label format.
- Cosmetic items are described as cosmetics and not as treatments.
- Customer reviews are moderated against the same audit.
- Creator posts follow a written brief and are logged.
Frequently asked questions
Do I need a licence to sell ayurvedic products online?
The manufacturer needs a state manufacturing licence under the Drugs and Cosmetics Rules. Section 33EEC of the Act also bars selling or stocking an Ayurvedic drug made in contravention of the Act, so source only from licensed manufacturers. Food products need FSSAI registration or licence. Keep copies of every licence on your product file.
Can I say my product cures a disease?
No, not for the conditions listed in the Schedule to the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954, which include cancer, diabetes, heart diseases and tuberculosis. Section 4 also bars false or misleading drug advertisements generally. Describe the product by its traditional use, ingredients and directions rather than outcomes, and keep evidence for every factual statement.
Do I need approval before advertising an ayurvedic product?
Rule 170, which required state approval of such advertisements, was omitted in July 2024. Its omission was stayed in August 2024, and the Supreme Court vacated that stay on 11 August 2025, according to Bar and Bench. The 1954 Act and consumer law still apply, so keep claims within them.
Does a Schedule E(1) medicine need a special label?
Yes. Rule 161(2) requires the container of an internal-use Ayurvedic medicine made up ready for the treatment of human ailments, if made from a Schedule E(1) substance, to carry the words "Caution: To be taken under medical supervision" in English and Hindi. Show the same caution on the product page next to the product name and directions.
What should an ayurvedic product label show?
Rule 161 requires the true ingredient list with botanical names and quantities, the drug name, net content in metric units, the manufacturer's name and address, the manufacturing licence number, a batch number, the date of manufacture, the words "Ayurvedic medicine" (or Siddha or Unani) and "FOR EXTERNAL USE ONLY" where relevant. Rule 161B adds the expiry date. Use the manufacturer's approved artwork.
Are customer testimonials safe to publish?
Only if they pass the same claim audit. A review that says a product cured a Schedule disease becomes part of your advertisement when you publish it. Moderate reviews, remove disease claims, and avoid offering incentives for reviews that make health promises. Keep the original reviews and your removal decisions on record for later reference.
Is an ayurvedic herbal tea a medicine or a food?
It depends on its form, ingredients and how it is described. A product eaten or drunk as part of a diet, made from a listed recipe, may be Ayurveda Aahara under FSSAI rules. A product promoted to treat a condition risks being treated as a drug claim. Ask the producer which licence it holds and describe the product accordingly.
What penalties apply for a misleading ayurvedic advertisement?
The 1954 Act provides imprisonment of up to six months, a fine or both for a first conviction under section 7, and up to a year for later ones. Separately, commentary on the Consumer Protection Act, 2019 reports CCPA penalties of up to ten lakh rupees, rising on repeat.
Do the new e-commerce rules apply to a store with its own domain?
The E-Commerce (Amendment) Rules, 2026 come into force from 1 January 2027, per the PIB release of 10 September 2026. The provisions in the amended rules is set by the text of the rules; showing dates, directions, returns and a grievance contact on your own store page meets their spirit in any case.
Sell ayurvedic products online with a store that keeps your records in order
If you plan to sell ayurvedic products online in India, the product page, GST invoice and order record should line up with the licence and label you hold. ShopMate gives you a branded storefront with variants, GST invoicing, Razorpay payments and shipping partners. Book a demo, read about ShopMate or review the pricing page. For launch steps, read our online store launch checklist for Indian sellers and the guide to GST invoices for an online store.
Disclaimer: This article is for general information only and is not legal, tax or financial advice. ShopMate is the publisher of this guide and has a commercial interest in the platform it describes. Sample claim wording, scenarios and figures are illustrative and are not approved wording. Rules, thresholds, fees and platform terms change, and your situation may differ. Consult a qualified chartered accountant or legal professional before making decisions.