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Alcohol-based hand sanitisers to attract GST of 18 per cent


Mangalore Today News Network

New Delhi, Jul 15, 2020: The Authority for Advance Ruling (AAR) has said that a GST of 18 per cent will be levied on all alcohol-based hand sanitisers as they come under the category of ’alcohol-based hand sanitisers.’ The ruling came in response to a petition by the Goa-based Springfield India Distilleries, which had ventured into the manufacturing of alcohol-based sanitisers.

 

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Springfield India Distilleries had approached the Goa-bench of AAR to seek clarity on classification of hand sanitisers supplied by it and to know whether these sanitisers would be exempt from GST as the Consumer Affairs Ministry had classified hand sanitisers as an essential commodity.

The Authority said, "It is of the opinion that hand sanitizers manufactured by the applicant are of the category of Alcohol-based sanitisers and are classifiable under heading 3808 of HSN to which rate of GST applicable is 18 per cent."

The ministry of consumer affairs had classified hand sanitisers as an essential commodity, but the GST law has a separate list of exempted goods, the authority emphasized in its ruling.

Health authorities worldwide have been recommending the use of alcohol-based hand sanitizers, containing at least 60 per cent alcohol, to keep the dreaded Covid19 virus at bay in the absence of any vaccine till date.


courtesy: NDTV


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