MOF issues clarification on GST rate on alcohol based hand sanitizers

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

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