Friday, Apr 19 2024 | Time 18:55 Hrs(IST)
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Business Economy


Domestic manufacturers will suffer with lower GST on alcohol-based hand sanitizers: Govt

New Delhi, Jul 15 (UNI) Lower GST rates help imports by making them cheaper and this is against the nation’s policy on Atmanirbhar Bharat, the government said in a clarification on Wednesday.
Consumers would also eventually not benefit from the lower GST rate if domestic manufacturing suffers on account of inverted duty structure, the Finance Ministry said in its statement.
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 per cent. Sanitizers are disinfectants like soaps, anti-bacterial liquids and dettol which all attract duty standard rate of 18 per cent 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 per cent.
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.
UNI RSA SHK2010
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