Avalara > Blog > Goods and Services Tax > AUS Ingredient Based Sanitizers to be 12% GST instead of 18%

AUS Ingredient Based Sanitizers to be 12% GST instead of 18%

  • Sep 30, 2020 | Divita S Gupta

The Punjab and Haryana High Court has directed GST Authorities to consider the Public Interest Litigation for reclassification of Ayurvedic/ Unani/ Siddha (AUS) Ingredient Based Sanitizers at 12% GST instead of the current rate of 18%. The Haryana Ayurvedic Drugs Manufacturers Association approached the Punjab and Haryana High Court seeking the quashing of showcause notices issued by the GST authorities to the manufacturers of the ‘AUS based sanitizers’ for depositing the GST at the Tariff Rate of 18% under the HS Code 3808-94 instead of 12%. 

The HADMA, in its petition has claimed that GST authorities have incorrectly classified AUS based sanitizers as alcohol-based sanitizers and have issued show cause notices asking manufacturers to correct the amount of GST paid. The association also said that a comprehensive representation in this regard had already been made to GST authorities, however no action on said representation has been taken till date. The Punjab and Haryana High Court has directed the GST Council for appropriate consideration of the contention of the petitioner or reclassification of Ayurvedic/ Unani/ Siddha Ingredient Based Sanitizers within 12% GST instead of 18%.


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Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.