On alcohol based sanitizers, the Authority for Advance Ruling (AAR said a 18% GST shall apply. Springfield India Distilleries reached out to Goa Bench of AAR for clarifying the classification of sanitizers and also contended that they are imposed a GST of 12%.
Also there was a clarification sought if the product shall be exempt from GST being an essential product now.
It also sought to know if sanitizers would be exempt from GST since it is now an essential commodity.
The AAR, in its ruling, said since hand sanitizers manufactured by the applicant are of the category of 'alcohol-based hand sanitizers', an 18 percent GST would be applicable. Also there is a clarification made that though the MCA has classified hand sanitizers, for the exemption GST law is different.
"Given its significance during the pandemic and with multiple players now into manufacturing of this product, the government should consider issuing an explicit clarification to control unwarranted litigation on this aspect," said EY tax partner Jain.