GST on Sanitizer

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The consumer demand for face masks and hand sanitizers has increased during the year 2020 due to the COVID-19 pandemic. These products are now necessary commodities for social distancing and maintaining good hygiene. Every buyer must aware of its pricing and MRP to avoid being overcharged. In this article, we discuss the GST on sanitizer and its importance.

Hand Sanitizer Market Overview:

As we know the significant role of sanitizer in today’s life, Alcohol-based hand sanitizers help to deter the spread of germs and illness-causing bacteria, particularly in busy environments like schools and offices. The Global Hand Sanitizer Market size was valued at $919 million in 2016 to reach $1,755 million by 2023 and is anticipated to grow at a CAGR of 9.9% from 2017 to 2023.

GST on Sanitizer

The rate of GST on sanitizer has for quite some time has debated. Due to misclassification of hand Sanitizers (alcohol-based), sugar mills and distilleries were filing tax under tariff heading 3004 (12% GST) by wrongly classifying them as “medicaments” instead of “disinfectants” under heading 3808 (18% GST).

The Directorate General of Revenue Intelligence (DGGI) had alleged that the misclassification has led to “substantial evasion” of tax. But several advance rulings GST, the authority has maintained a particular HSN code for its classification. As per the policy, GST on hand sanitizers, alcohol-based, considered for 18% under the HSN code 3808. Also, it is mandatory to obtain GST Registration for hand sanitizer business.

Know About HSN Code

HSN stands for ‘Harmonized System Nomenclature.’ The WCO (World Customs Organization) formed it as a multipurpose international product nomenclature that first came into effect in 1988 Also; HSN is a unique code that classifies more than 5000 products, arranged in a legal and logical structure.

HSN Code 3808 for Hand Sanitizer

HSN code for hand sanitizer is 3808. It includes Insecticides, rodenticides, fungicides, herbicides, anti-sprouting stocks and plant-growth regulators, disinfectants and related products.

Note- Hand sanitizers fall under the category of disinfectants with 18% GST rate.

GST on Advertising Services

In case, you require any kind of guidance related to the GST return filing  GST Registration, or any other GST compliance, please feel easy to contact our business advisors at 8881-069-069.

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