The hand sanitizers are classifiable under Heading 3808 and liable to tax @18%
Classification of goods— In the instant case, the applicant is engaged in the manufacture of toilet soaps, LED bulbs and fittings, other toiletries, and other consumer products and manufacturing & marketing Hand Sanitizer at a large scale at their various factories primarily to combat the situation arising on account of pandemic COVID - 19. Thus the applicant has sought advance ruling in respect of the following questions:
a. What is the appropriate classification of Hand Sanitizer for the purpose of GST?
b. What is the applicable rate of GST?
In this regard it is to be noted that hand sanitizers are used to disinfect the skin surfaces from microbes and viruses. All disinfectants have a property of killing disease causing agents and can claim to be prophylactic in nature. But the main activity of the disinfectant is to disinfect the surfaces.
Held that— We conclude that the impugned goods are covered under heading 3808, which in turn is covered under entry no. 87 of Schedule III of Notification No.01/2017 - Central Tax (Rate) dated 28.06.2017 and hence are taxable at the rate of 18%.
The hand sanitizers are classifiable under Heading 3808 and liable to tax @18%
Classification of goods— In the instant case, the applicant is engaged in the manufacture of toilet soaps, LED bulbs and fittings, other toiletries, and other consumer products and manufacturing & marketing Hand Sanitizer at a large scale at their various factories primarily to combat the situation arising on account of pandemic COVID - 19. Thus the applicant has sought advance ruling in respect of the following questions:
a. What is the appropriate classification of Hand Sanitizer for the purpose of GST?
b. What is the applicable rate of GST?
In this regard it is to be noted that hand sanitizers are used to disinfect the skin surfaces from microbes and viruses. All disinfectants have a property of killing disease causing agents and can claim to be prophylactic in nature. But the main activity of the disinfectant is to disinfect the surfaces.
Held that— We conclude that the impugned goods are covered under heading 3808, which in turn is covered under entry no. 87 of Schedule III of Notification No.01/2017 - Central Tax (Rate) dated 28.06.2017 and hence are taxable at the rate of 18%.