Himalaya searches highlight issue of classifying products under GST regime

Experts said in many such cases, allegations have been found to be frivolous by higher courts

Initial apprehensions over the classification of items in the GST regime are coming true, at least in some cases. The recent action against Himalaya Drug Company, whose offices were searched by tax authorities, emanates from this very problem. 

Bengaluru-based Himalaya was allegedly paying 12 per cent GST on wet baby wipes by claiming the item is non-cosmetic. On the other hand, the Centre demanded a rate of 18 per cent. The rate on wet baby pipes was earlier 28 per cent.

When contacted, the company said in a statement, “This product, Baby Wipes, has been in the market since 2007. The company