Why is the government supporting 18% GST on sanitisers?

New Delhi: The government on Wednesday said a GST of 18% will be levied on sanitisers as they are disinfectants like soaps and anti-bacterial liquids among others.

Although the Ministry of Consumer Affairs has classified hand sanitisers as an essential commodity, the GST law has a separate list of exempted goods.

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Reducing the GST rate on sanitisers and other similar items would lead to an inverted duty structure and put domestic manufacturers at a disadvantage vis-a-vis importers of hand sanitisers, the finance ministry said.

The Goa bench of Authority for Advance Ruling (AAR) had recently ruled that alcohol-based hand sanitisers will attract 18% duty under GST.

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