The rate of tax on Isopropyl Rubbing Alcohol and Chlorhexidine Gluconate and Isopropyl Alcohol solution is 18%. However, with effect from 14th June 2021 upto 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 and sale of different pharmaceutical formulations comprising of tablets, capsules, oral liquids and dry syrups in India and also export the same to various countries across the globe. The Appellant has been classifying the products under the HSN 3808 upon which the levy of GST was 18%. However, it is the Appellant's understanding that the said goods would fall under HSN 3004 with a GST rate of 12%. The appellant sought an 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 Isopropyl rubbing alcohol IP and Chlorhexidine Gluconate & Isopropyl Alcohol solution merit classification under Chapter Heading 3808 and attract 18% GST in terms of entry no 87 of Schedule III of Notification No 01/2017-Central Tax (Rate) dated 28-06-2017.
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 Isopropyl Rubbing Alcohol and Chlorhexidine Gluconate and Isopropyl Alcohol solution is 18%. However, with effect from 14th June 2021 upto 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 and sale of different pharmaceutical formulations comprising of tablets, capsules, oral liquids and dry syrups in India and also export the same to various countries across the globe. The Appellant has been classifying the products under the HSN 3808 upon which the levy of GST was 18%. However, it is the Appellant's understanding that the said goods would fall under HSN 3004 with a GST rate of 12%. The appellant sought an 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 Isopropyl rubbing alcohol IP and Chlorhexidine Gluconate & Isopropyl Alcohol solution merit classification under Chapter Heading 3808 and attract 18% GST in terms of entry no 87 of Schedule III of Notification No 01/2017-Central Tax (Rate) dated 28-06-2017.
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.