The definition and classification of medicines is not based on levy of local taxes but on various Schedules of Drugs & Cosmetics Rules. Even if suggested by a doctor, Lactogen, Amul Baby Food, Toothpastes and Antiseptic Creams (the ones sold over the counter) are not medicines. However Dettol is a medicine as per Drugs & Cosmetics Rules.
No organisation would reimburse the cost of non-medicines not only for reasons of classification but also Income Tax Laws in force.