The rate of tax on alcohol-based hand sanitizer is 18% under Chapter Heading 3808. however, with effect from 14th June 2021 up to 30th September 2021, the GST rate on hand sanitizer has been reduced to 5% GST.
Appellate Authority for Advance Ruling — Classification and rate of tax on Hand Sanitizer – The appellant engaged in the manufacture of toilet soaps, LED bulbs and fittings, other toiletries and other consumer products and manufacturing and marketing Hand sanitizer. The appellant sought ruling from the Authority for Advance Ruling as to what is the appropriate classification of the hand sanitizer for the purpose of GST and what is the applicable rate of GST. The AAR vide its order dated 26th February 2021 held that the hand sanitizers are classifiable under Heading 3808 under the Customs Tariff Act and the hand sanitizers are liable to tax at the rate of 9% under CGST Act and at the rate of 9% under the KGST Act.
Held that:- The Hon’ble Appellate Authority for Advance Ruling uphold the order dated 26/02/2021 passed by the Advance Ruling Authority and dismissed the appeal filed by the appellant.
The rate of tax on alcohol-based hand sanitizer is 18% under Chapter Heading 3808. however, with effect from 14th June 2021 up to 30th September 2021, the GST rate on hand sanitizer has been reduced to 5% GST.
Appellate Authority for Advance Ruling — Classification and rate of tax on Hand Sanitizer – The appellant engaged in the manufacture of toilet soaps, LED bulbs and fittings, other toiletries and other consumer products and manufacturing and marketing Hand sanitizer. The appellant sought ruling from the Authority for Advance Ruling as to what is the appropriate classification of the hand sanitizer for the purpose of GST and what is the applicable rate of GST. The AAR vide its order dated 26th February 2021 held that the hand sanitizers are classifiable under Heading 3808 under the Customs Tariff Act and the hand sanitizers are liable to tax at the rate of 9% under CGST Act and at the rate of 9% under the KGST Act.
Held that:- The Hon’ble Appellate Authority for Advance Ruling uphold the order dated 26/02/2021 passed by the Advance Ruling Authority and dismissed the appeal filed by the appellant.