Ministry of Finance has issued Press release dated 15th July, 2020 to clarify that alcohol based hand sanitizers attract GST at the rate of 18% stating that sanitizers are disinfectants like soaps, anti-bacterial liquids, dettol etc. all of which attract duty standard rate of 18% under the GST regime.
It has been further clarified that inputs for manufacture of hand sanitizers are chemicals packing material, input services, which also attract a GST rate of 18% and reducing the GST rate on sanitizers and other similar items would lead to an inverted duty structure and put the domestic manufacturers at disadvantage vis-a-vis importers.
Source : Press Information Bureau
