GST RATE QUERRY FOR HAND SANITIZER

[SAFETAB LIFESCIENCE]

Dear Experts,

Hope you are all safe. Please stay safe.

Ours is a Pharma manufacturing company and obtained license to manufacture Hand Sanitizer (using alcohol) from Drug Department and started manufacturing. We are going to sell only to drug distributors who are having drug license.

Kindly share us the HSN Code and GST rate, please immediately and oblige.

[KASTURI SETHI]

Refer to Issue ID 116174 dated 30.3.20 . First go through reply at serial no.12 dated 5.4.20 posted by Sh.Sanjay Malhotra, Sir. Thereafter, read my views. It will be convenient for you to grasp the complicated classification.

If raw material/ingredient, namely, ethanol (alcohal) pre-dominates in the final product , namely, hand sanitizer it is classified under Chapter/Heading No. 3004 of Tariff Act attracting rate of tax @12%.. For your further information , Chapter/Heading No.3402 attracts 18% and 3808 attracts 18%. So the classification depends upon which raw material/ingredients predominates and for what purpose is being used. There are different types sanitizers with different purpose, function and usages. Hence different classifications for sanitizer. In your product, ethanol (alcohol) predominates, so your product is most appropriately classifiable under Chapter/Heading No.3004.

[KASTURI SETHI]

Madras High Court has ordered notices returnable on 18.5.2020 to the Central Govt. and State Govt. to suspend collection of GST for hand sanitizers and masks used to fight COVID-19. GST @18% and 5% being charged respectively. PIL was filed.

[CSSANJAY MALHOTRA]

Dear Sh. Kasturi ji,

Addendum to your revert. DGFT at the time of placing ban on sanitisers too was aware of clerance of same under various HSN's and hence placed all under prohibition.

Attached is the DGFT Notification.

DGFT Notification No. No. 52/2015-2020 - Dated: 19-3-2020 - FTP

[CSSANJAY MALHOTRA]

DGFT Notification No. No. 52/2015-2020 - Dated: 19-3-2020 - FTP

[KASTURI SETHI]

Respected Sir,

Thanks a lot for information.

[YAGAY and SUN]

You may refer following link for cross checking of HSN Code for Hand Sanitizer.

Notification No. 04/2015-2020 New Delhi, Dated: 06 May 2020

[Mohit Singla]

Plz kindly give me details...We are Hand Sanitizer Manufacturer and we are manufacturing under Ayurvedic License. So under which Gst Rate and HSN code we have to billed

AI Summary

GST classification of hand sanitizers hinges on predominant ingredient, affecting applicable tax rate and HSN code. GST treatment of hand sanitizers turns on tariff classification by predominance of ingredients and intended use: alcohol predominant (ethanol) sanitizers are classifiable with medicinal preparations and attract a lower GST rate, while other formulations fall under different chapters that attract a higher GST rate; composition, purpose, licence type and applicable trade notifications determine the correct HSN code and compliance obligations.