GST Rates on Hand Sanitizer and Other Hygiene Products

When GST was to be levied on Hand Sanitizers, a lot of debates were taking place for it to be finalized either 12% or 18%. The press release was issued dated 15^th July 2020, By the Ministry of Finance stating that the GST rate on Hand Sanitizer is to be levied at the rate of 18%. The Decision was taken based on Hand Sanitizer falling under the category of disinfectants like soaps, anti-bacterial Liquids, etc. as they all attract an 18% GST rate.

Furthermore, the decision was also made favorable to the domestic manufacturers, as they would have been at a disadvantage if the rate was imposed at 12% instead. That scenario would be the cause of an inverted rate Structure because the materials or resources used for manufacturing hand Sanitizers attract a rate of 18% as well.

In addition, the Ministry also stated that GST rates on Masks and Hand Sanitizer are not to be reduced or altered. The reason is the prevention of an Inverted tax structure.

HSN Codes and GST Rates for Hygiene Products used commonly in the Households:

• Cotton Face Masks to be Categorized under HSN code 5208 to 5212 @ 5%
• Face Masks other than Cotton Categorized under HSN Code 9020 @ 12%
• Hand wash @ 18% with the HSN Code 3401
• Alcohol-based Hand Sanitizer @ 18% with the HSN Code 3808
• Gloves to attract an 18% GST Rate under the HSN code 4015
• Disinfectants under the HSN Code 3402 with the GST rate @ 18%
• Tissue paper/Napkins etc. to attract a GST rate of 18%

HSN Codes and GST Rates for Other Products at Offices, Factories, or Hospitals:

• Face Shields & PPE with HSN Code 3926 @ 18%
• Disposal Bins (used for Hazardous waste) attract a GST rate of 18% under the HSN Code 3923
• Diagnostic Test Kits for COVID-19 with the SNHSN Code 30 @ 5% GST rate

Ventilator to attract a 12% GST Rate while Falling under HSN Code 9019