The Supreme Court on Wednesday required the petitioner challenging the levy of GST on hand sanitisers under the same Tariff Heading as insecticides etc to approach the High Court.
The controversy regarding levy of GST on sanitizers is primarily concerned with two Tariff Headings—3808 and 3004.
The former relates to disinfectants, apart from insecticides, herbicides, plant-growth regulators, etc. and attracts the GST rate of 18%, while the latter relates to Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses and attracts the GST rate of 12%.
The sanitizer manufacturers/ importers have stressed on the need to reclassify sanitizers as "Medicaments" given that it is being used as a protection from Coronavirus. The Union Finance Minister on the other hand had clarified in July that hand sanitizers are "disinfectants" like soaps, anti-bacterial liquids, etc. which attract 18% GST