AAR Goa: No GST relaxation on Alcohol based Hand-Sanitisers even if they come under the ambit of 'Essential Commodities' (Read Order)

On an application being instituted by the Springfields Distelleries for advance ruling, the Goa Bench of the Goods and Services Tax Authority for Advance Ruling ruled that the alcohol-based hand sanitizers will be levied with 18% of GST.

The application is a registered partnership firm carrying their occupation of Hand Sanitizers had approached the concerned authorities for assessing the status of GST should be levied on their commodity.

Observation of the Bench:

The Bench observed that the hand sanitizers prepared by the applicant company comes under the category of HSN 38008 and therefore qualified under the slab rate of 18% GST.

HSN stands for Harmonised system of Nomenclature created by World Customs Organization with the objective of classifying all the goods in the world in a structural framework. In India after the applicability of GST system of tax, HSN is taken into consideration for the imposition of tax. The common description depicted by the above stated nomenclature pertains to herbicides, disinfectants, anti sprouting products, plant growth regulators, insecticides and products of similar nature.

In the words of the Bench “Alcohol –Based Hand Sanitizers manufactured by the applicant are covered by HSN 3808 and are accordingly taxable at appropriate rate as per the schedule entry notified vide notification No.1 Central Tax Rate dated 28/06/2017”.

It was further observed by the Bench that the Ministry of Consumer Affairs, Food and Public Distribution vide notification CG-DL-E130332020- 218645 had earlier stated the Hand Sanitizers under the ambit of essential commodity under the Essential Commodities ACT 1955. However, the Bench clarified the same and asserted that the exempted goods covered by notification no.2/2017 – Central Tax Rate dated 28/06/2017 will not the sole criteria for exempting them from the imposition of GST.

Case Details:

Before: AAR, Goa

Applicant: Springfileds Distelleries

Quorum:  Hon’ble Justice J.K. Meena & Justice Sarita S. Gadgil

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