18% GST to be levied on alcohol-based hand sanitizers: AAR

The authority further said although the Ministry of Consumer Affairs has classified hand sanitizers as an essential commodity, the GST law has a separate list of exempted goods

Moneycontrol News

July 14, 2020 / 21:59 IST

PeeSafe | Headcount : 150 | Headquarters: Gurugram | Year founded: 2017 | According to LinkedIn, the company has seen a spike in online sales since March, which offset a drop in footfall at physical stores. It rolled out products such as hand sanitisers, surface protectants and face masks amid the pandemic.(Representational Image: pexels.com)

A GST of 18 percent will be levied on alcohol-based hand sanitizers, the Authority for Advance Ruling (AAR) has said.

Springfield India Distilleries had approached the Goa-bench of AAR to seek classification of hand sanitizers supplied by the company, and contended that the product is taxed at 12 percent.

It also sought to know if sanitizers would be exempt from GST since it is now an essential commodity.

The AAR, in its ruling, said since hand sanitizers manufactured by the applicant are of the category of 'alcohol-based hand sanitizers', an 18 percent GST would be applicable.

The authority further said although the Ministry of Consumer Affairs has classified hand sanitizers as an essential commodity, the GST law has a separate list of exempted goods.

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