The issue of GST rate on alcohol-based hand sanitisers clarified

The issue pertaining to GST rate on alcohol-based hand sanitisers has been reported in few sections of media. Regarding this Press Information Bureau has issued a clarification to clear the air.

According to Press Information Bureau, hand sanitisers attract GST at the rate of 18 percent. Sanitisers are disinfectants like soaps, anti-bacterial liquids, dettol, etc., which  all  attract duty at the standard rate of 18 percent under the GST regime. The GST rates on various items are decided by the GST Council where the Central Government and  all the state governments together deliberate and take decisions.

PIB further clarified that inputs for manufacture of hand sanitisers are chemicals packing material, input services, which also attract a GST rate of 18 percent.

PIB airs that reducing the GST rate on sanitiesrs and other similar items would lead to an inverted duty structure and put the domestic manufacturers at disadvantage vis-a-vis importers. Further, lower GST rates help imports by making them cheaper, which is against the nation’s policy of Atmanirbhar Bharat.

It points out that consumers would also eventually not benefit from the lower GST rate if domestic manufacturing suffers on account of inverted duty structure.