Page 64 - GSTL_23rd July 2020_Vol 38_Part 4

C18 GST LAW TIMES [ Vol. 38
registration applications have been deemed approved on the portal because of
technical glitches. GSTN has been requested to forward the list of such GSTINs
who got deemed approval during the lockdown to the jurisdictional officers. In
such cases, where ever required, proper officers may get the physical verification
of business premises done.
[C.B.I. & C. Instruction F. No. CBEC-20/06/11/2020-GST, dated 17-7-2020]

GST rate on alcohol-based hand sanitizers — Clarification
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-
à-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.
[https://www.pib.gov.in, dated 15-7-2020]

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GST LAW TIMES  23rd July 2020  64