Covid-19: Alcohol-based hand sanitizers to attract 18% GST, rules AAR

Amid the ongoing debate over goods and services tax (GST) rate on hand sanitizers, the Goa bench of the GST Authority of Advance Ruling (AAR) has held that the alcohol-based hygiene product will attract 18 per cent GST. It added that its classification as an essential commodity cannot be a criteria for exemption from GST.

Springfields (India) Distilleries had moved Goa AAR over classification of the hand sanitizer and the applicable rate of GST. It also sought an opinion on whether it will be exempt from GST as the consumer affairs ministry has classified hand sanitizers as essential commodity.

The applicant was