Springfields (India) Distilleries had sought for Advance ruling on the issue as to classification of the Goods namely “Hand Sanitizer” and rate of GST to be applied.
The Goa-bench of the GST-Authority for Advance Rulings (AAR) has ruled that Alcohol based hand sanitizers attract a GST of 18% and merely classifying any goods as essential commodity will not be the criteria for exempting such Goods from GST.
Springfields (India) Distilleries had sought for Advance ruling on the issue as to classification of the Goods namely “Hand Sanitizer” and rate of GST to be applied.
The company also sought opinion on whether Hand Sanitizers supplied by it are classifiable as essential commodity, as per the notification of Ministry of Consumer Affairs and to be exempt from GST.
The classification of hand sanitizers has been a matter of debate since inception especially given the multiple entries in which it could warrant classification because of its composition and uses. 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.
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