It additionally sought to know if sanitisers can be exempt from GST since it’s now a vital commodity.
The AAR, in its ruling, mentioned since hand sanitisers manufactured by the applicant are of the class of ‘alcohol-based hand sanitisers’, a 18 per cent GST can be relevant.
The authority additional mentioned that though the Ministry of Client Affairs has categorised hand sanitisers as a vital commodity, the GST regulation has a separate listing of exempted items.
EY Tax Associate Abhishek Jain mentioned the ruling is aligned to the view taken by GST authorities as nicely of a charge of 18 per cent being relevant readily available sanitisers.
Jain mentioned the classification of hand sanitisers has been a matter of debate since inception, particularly given the a number of entries during which it may warrant classification due to its composition and makes use of.
“Given its significance in the course of the pandemic and with a number of gamers now into manufacturing of this product, the federal government ought to think about issuing an specific clarification to manage unwarranted litigation on this facet,” he added.