When the applicant approached the authority for an advance ruling regarding the GST of the hand sanitizers, Additional Commissioners of Central Tax, J.K.Meena and Sarita S.Gadgil, held that that, the hand sanitizers manufactured by the appellant will be covered under a tax rate of 18% as the hand sanitizer is covered under HSN 3808, i.e., Insecticides, rodenticides, fungicides, herbicides, anti- sprouting products and plant -growth regulators, disinfectants and similar products and the appropriate tax rate as per the schedule entry is 18%. The Harmonised System of Nomenclature (HSN) is a system developed by the World Customs Organisation (WCO) with an objective of categorizing all the goods in the world in a structural fashion. In India after the establishment of GST system, the HSN is also used for determining the tax.
The bench has held that, instead of HSN 30049087 i.e. Antihypertensive drugs (whose GST Rate is 12%) as claimed by the applicant, the hand sanitizers which are alcoholic based comes under HSN 3808.
“As far as exempting Hand sanitizers as essential commodity, since it is classified as such by Ministry of Consumer Affairs, Food and Public Distribution, this authority is of the view that exempted goods are covered by notification no.2/2017/- Central Tax (Rate) dated 28/06/2017. Merely classifying any goods as essential commodity will not be the criteria for excepting such goods from GST”, the Court observed.