Alcohol-Based Sanitizers to Attract 18% GST Despite Being Essential Commodity: Goa AAR
GUWAHATI: Amid the controversy over the actual goods and service tax (GST) that is to be levied on hand-sanitizers that have been labeled as an essential commodity by the Ministry of Consumer Affairs, the Goa bench of the Authority for Advance Ruling (AAR) has ruled that alcohol-based sanitizers should attract a GST of 18 percent.
It ruled, "Merely classifying any goods as an essential commodity will not be the criteria for exempting such goods from GST."
Springfields (India) Distilleries had moved the Goa AAR for classification of hand sanitizer and the applicable GST on the commodity.
"Hand sanitizers manufactured by the applicant are of the category of alcohol-based sanitizers and are classifiable under heading 3808 of the Harmonised System of Nomenclature (HSN) to which the rate of GST applicable is 18 percent,” the AAR bench ruled.
Notably, the GST administration is currently investigating manufacturers of alcohol-based sanitizers for evading the GST payment.
Only 12 percent GST has been paid till now by classifying the commodity under a different heading of 'medicament' wrongly.
Reportedly, many manufacturers have been classifying sanitizers under the tariff heading 3004 and paying 12 percent GST instead of the actual tariff of 3808 of HSN that demands 18 percent GST.