GST Applicability on Sanitizers

During this pandemic the Goa Bench of the GST Authority of Advance Ruling (AAR) has held that the alcohol based hand sanitizers will attract 18% GST. This cannot be exempted from GST however; it is classified as essential commodity.

The applicant was of the opinion that hand sanitizers should be taxed at 12% under GST as it is categorized under medicament. But the Goa bench of the GST Authority of Advance Ruling (AAR) was of the view that hand sanitizers are covered in the category of alcohol based sanitizers and is classified under heading 3808 of Harmonised System of Nomenclature (HSN) to which the GST rate is applicable @ 18%.

AAR said that considering alcohol based hand sanitizers as essential commodity will not be classify that good in the category of exempted goods.

Why are hand sanitizers not so common in India?

The various reasons that states that hand sanitizers are not so common in India are:

• As the Indian culture is all about Namaste. Indians don’t practice handshakes as a culture. Like in India, Japan also prefers social distancing and avoids handshakes. That’s why they have controlled corona virus infection rate.
• As Indians avoid spoons and forks while eating so they have the habit of cleaning hands with soap and water almost 3-4 times a day.
• Hand sanitizers are considered as luxury expense by the Indian middle class family.
• Some people got irritation or allergy from hand sanitizers.
• GST on hand sanitizer is 18% (9% SGST, 9%CGST) that made hand sanitizer more costly.
• Import duty on sanitizer after GST is 26.85% in India (7.5% BCD, 18% IGST).