18% GST applicable on alcohol-based sanitisers
- | Divita S Gupta
The Goa bench of the Authority for Advance Ruling (AAR) has ruled that Alcohol-Based Hand Sanitisers fall under HSN 3808 and are liable to a GST of 18%. The applicant who is involved in the manufacturing of Hand Sanitisers vide License issued by the Directorate of Food and Drug Administration approached the Goa AAR seeking an advance ruling to clarify the classification of products that fall under the category of 'Hand Sanitizer' and the rate of GST to be applied for the product. In their submission, the applicant claimed that hand sanitisers are covered under HSN 30049087 and therefore should be taxed at the rate of 12%. The Goa AAR held that since hand sanitisers are alcohol based, they fall under HSN code 3808 and not 30049087. As such they will attract GST at the rate of 18% and not 12%.