October 20, 2020

hand sanitisers: Alcohol-based hand sanitisers to draw 18 laptop GST: Authority for Advance Ruling

NEW DELHI: The Authority for Advance Ruling (AAR) has mentioned {that a} GST of 18 per cent shall be levied on all alcohol-based hand sanitisers. Springfield India Distilleries had approached the Goa-bench of AAR to hunt classification of hand sanitisers provided by the corporate, and contended that the product is taxed at 12 per cent.

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.