Ministry of Finance
Press note
15.07.2020.

The  issue of GST rate on alcohol  based  hand sanitizers has been reported  in few sections of media.

It is stated   that hand sanitizers  attract GST at the  rate  of  18%.  Sanitizers  are  disinfectants like  soaps,   anti-bacterial    liquids,   dettol   etc which  all  attract  duty  standard  rate  of  18% 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.

It  is  further  clarified  that  inputs  for manufacture  of hand  sanitizers  are chemicals packing  material,   input  services,  which  also attract a GST rate of  18%.Reducing  the GST rate   on   sanitizers   and   other   similar   items would  lead  to  an inverted  duty  structure  and put   the   domestic   manufacturers    at disadvantage vis-a-vis importers. Lower GST rates  help  imports  by  making  them  cheaper. This  is  against  the  nation’s   policy  on Atmanirbhar Bharat. Consumers would also eventually  not benefit from the lower GST rate if domestic  manufacturing   suffers  on account of inverted duty structure.