GST Rate for Topical Antiseptic Solution: 18% CGST 9% SGST 9%

The 'Topical Antiseptic Solution/Topical Antiseptic Hand Sanitiser' is classified under HSN code 3808 94 00 (disinfectant) and attracts a GST rate of 18%. The CGST rate applicable is 9%, along with an SGST rate of 9%, resulting in a total GST rate of 18%.

---

---

Issues Involved:
1. Classification of 'Topical Antiseptic Solution/Topical Antiseptic Hand Sanitiser' under HSN code 3004 90 87 (medicament) or 3808 94 00 (disinfectant).
2. Rate of tax payable on 'Topical Antiseptic Solution/Topical Antiseptic Hand Sanitiser' under CGST Act, 2017 and UPGST Act, 2017.

Detailed Analysis:

Issue 1: Classification of 'Topical Antiseptic Solution/Topical Antiseptic Hand Sanitiser'
The applicant, a manufacturer and wholesaler of pharmaceuticals and nutraceuticals, sought to determine whether their product, 'Topical Antiseptic Solution/Topical Antiseptic Hand Sanitiser,' should be classified under HSN code 3004 90 87 (medicament) or 3808 94 00 (disinfectant).

Applicant’s Argument:
- The product is intended for use by health professionals and the general public for antiseptic cleaning, particularly in medical settings.
- The composition includes Chlorhexidine Gluconate and Ethanol, both of which are recognized antiseptic agents.
- Disinfectants are generally understood to be used on inanimate objects, whereas antiseptics are used on living tissues.
- The product is labeled and used in a manner consistent with medicinal products, specifically for prophylactic use to prevent infection.

Jurisdictional Officer’s Opinion:
- The product should be classified under HSN 3808 94 00 as a disinfectant, with a GST rate of 18%.

Authority’s Findings:
- The term "disinfectants" under HSN 3808 includes agents that destroy or inactivate bacteria, viruses, or other microorganisms, generally on inanimate objects, but also includes sanitizers.
- The Ministry of Finance has clarified that hand sanitizers attract GST at the rate of 18%.
- Medicaments are defined as preparations for the treatment or prevention of human or animal ailments. However, products meant for general hygiene, which may prevent a host of illnesses, are not considered medicaments.
- The product does not qualify as a medicament because it is used for general hygiene rather than treating or preventing a specific ailment.

Conclusion:
The 'Topical Antiseptic Solution/Topical Antiseptic Hand Sanitiser' is classifiable under HSN code 3808 94 00 (disinfectant).

Issue 2: Rate of Tax Payable
The applicant sought to determine the applicable tax rate for the product under the CGST Act, 2017, and the UPGST Act, 2017.

Relevant Notifications:
- Notification No. 1/2017-Central Tax (Rate) dated 28-Jun-2017 specifies the rates for various goods.
- Entry No. 87 of Schedule III specifies a rate of 18% for disinfectants and similar products.
- Entry No. 63 of Schedule II specifies a rate of 12% for medicaments.

Authority’s Findings:
- Based on the classification under HSN 3808 94 00, the product falls under entry no. 87 of Schedule III, attracting a GST rate of 18%.
- This rate comprises 9% CGST and 9% SGST.

Conclusion:
The CGST rate on 'Topical Antiseptic Solution/Topical Antiseptic Hand Sanitiser' is 9%, and the SGST rate is also 9%, making a total GST rate of 18%.

Ruling:
1. The 'Topical Antiseptic Solution/Topical Antiseptic Hand Sanitiser' is classifiable under HSN code 3808 94 00.
2. The CGST rate on 'Topical Antiseptic Solution/Topical Antiseptic Hand Sanitiser' is 9%, and the SGST rate is 9%, totaling an 18% GST rate.

This ruling is valid within the jurisdiction of the Authority for Advance Ruling Uttar Pradesh and subject to the provisions under Section 103 (2) of the CGST Act, 2017, until declared void under Section 104(1) of the Act.

---