People will also have to pay more tax on this essential thing.
New Delhi: While the central government has placed alcohol-based hand sanitizer in the list of essential commodities during the corona virus epidemic, gst has placed it in the list of commodities which attract 18 per cent tax. Now, people will have to pay more tax on this essential thing. The order was issued by the Goa Bench of the Authority of Advance Ruling (AAR) on GST.
This company had asked AAR questions
Springfield India Distilleries had appealed to the Goa bench of the AAR to classify the sanitizer supplied by the company. The company argued that the product is 12 per cent GST. In addition, the company had also asked whether sanitizer is the essential commodity, so will it get GST exemption.
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So it will take 18 per cent tax
The AAR ruled that the hand sanitizer manufactured by the applicant is alcohol based. It will be charged GST at the rate of 18 per cent. The ministry of consumer affairs, though classifying hand sanitizer as an essential commodity, has a separate list of exempted items in the GST law, the authority said.
Abhishek Jain, tax adviser, EY, said the findings are in line with the GST Authority’s view of an 18 per cent tax rate on hand sanitizer. Jain said that since the beginning, the classification of hand sanitizer has been a matter of debate. He said the demand for hand sanitizer has increased considerably during the corona virus epidemic. A large number of companies have jumped into the sanitizer market. In such a way, the government should issue clarifications to clear things on it to avoid unnecessary controversy.
