The Union Finance Ministry on Wednesday said that hand sanitizers are disinfectants like soaps, anti-bacterial liquids, dettol, which attract an 18% GST. It said that reducing the GST rate on sanitizers and other items would lead to an inverted duty structure and put domestic manufacturers at a disadvantage.
"It is stated that hand sanitizers attract GST at the rate of 18%. Sanitisers are disinfectants like soaps, anti-bacterial liquids, Detoll etc, which all attract duty standard rate of 18% under the GST regime. Various chemicals, packing materials, and input services etc used for manufacture of hand sanitisers also attract 18% GST. Reducing GST rate on sanitisers and other similar items would lead to an inverted duty structure and put domestic manufacturers at a disadvantage," the ministry said.
It further said that 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."