18% GST on sanitizer with which hands are being washed
The Finance Ministry has justified the decision of the Authority of Advance Ruling (AAR) to impose 18 per cent GST on hand sanitizers.
The Finance Ministry has justified the decision of the Authority of Advance Ruling (AAR) to impose 18 per cent GST on hand sanitizers. The Finance Ministry said on Wednesday that hand sanitizer is also disinfectant like other items like soap.
Same GST on raw materials too
The finance ministry said in a statement that various chemicals, packing materials and raw material service used in the production of ‘hand sanitizer’, including others, attract 18 per cent GST. The ministry said that by reducing the GST rate on sanitizer and other items of the same kind, the reverse duty structure will be created. That is, a higher duty on raw materials than the finished product. This will harm domestic manufacturers as well as importers of ‘hand sanitizers’.
The Finance Ministry explained in detail that reducing the GST rate will make the import of sanitizer cheaper. If the raw material is taxed more than the finished product, it will hurt the domestic industry.
Reduction in GST against the policy of self-reliant India
According to the statement, “Reduction in GST rate will make imports cheaper. This will be against the policy of self-reliant India of the country. If the companies suffer losses due to the reverse duty structure, then the customers will also ultimately not benefit. ”
Goa bench ordered The Goa Bench of the Advance Ruling Authority recently arranged that the alcohol-based hand sanitizer will be charged 18 per cent under GST. Although the Ministry of Consumer Affairs has placed ‘Hand Sanitizer’ in the category of compulsory items, there is a separate list of exempted goods under the GST Act.
