Case Law Details
In re Springfields (India) Distilleries (GST AAR Goa)
Hand Sanitizers manufactured by the applicant are of the category of Alcobased hand sanitizers and are classifiable under heading 3808 of HSN to which rate of GST applicable is 18%. As far as exempting hand sanitizers as essential commodity since it is classified as such by Ministry of Consumer Affairs, Food and Public Distribution, this Authority is of the view that Exempted goods are covered by Notification no. 2/2017/- Central Tax (Rate) dated 28/06/2017. Merely classifying any goods as essential commodity will not be the criteria for exempting such Goods from GST.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GOA
PROCEEDING
(Under Section 98 of the Goa Goods and Services Tax, Act 2017)
1. The present application has been filed under section 97 of the Goa Goods and Services Tax Act, 2017 and the Central Goods and Services Tax, Act 2017 (hereinafter referred to as the SGST Act and CGST Act) by Springfields (India) Distilleries, Raia Salcete seeking an Advance Ruling in respect of the following question:
1. Hand Sanitizer is covered under following HSN Code & rate:
30049087 – Antihypertensive drugs : Antibacterial formulations not elsewhere specified or included HS Code and Indian Harmonized System Code. Rate of GST is 12%.
The Minstry of Consumer Affairs, Food and Public Dirtribution, in a notification CG-DL-E13032020-218645 has classified Hand Sanitizers under the Essential Commodities Act, 1955 as an essential commodity and thus exempt from GST.
BRIEF FACTS
Springfields (India) Distilleries, have their registered office at H.No 2, Raicho Ambo, Raia Salcete and hold GSTIN 30AAOFS2556B1ZI.
The Applicant is a registered partnership firm manufacturing Hand Sanitizers vide Lisence No.999, issued by Directorate of Food and Drugs Administration dated 01.04.2020.
Comments from concerned officer were called.
Concerned Officer has offered his comments and are briefed as below:
Hand sanitizers are primarily used for disinfecting / Sanitizing hands. Following entries are found in Notification No.1/2017-Central Tax (Rate) related to hand sanitizers based on the end use of product.
The applicant has referred to HSN code 30049087 in this application. Tariff Item: 3004 refers to medicaments for therapeutic or prophylactic uses. General sanitizer is used as an alternative to wash hands (to maintain hygiene) hence general alcohol-based hand sanitizer without any curative or preventive ingredients may not be considered as a medicament.
Concerned Officer opines that following factors may be considered for classifying said product.
> Curative effect of the product (therapeutic use)
> Preventive effect of the product (prophylactic use)
> Period of usage i.e, to be used for limited period or
> Product contains curative/preventive ingredients.
> Trade parlance, i.e, how it is known in the market.
Personal Hearing:
Personal Hearing in the matter was extended to the applicant Shri Aleixo Sequeira on 17/06/2020 Shri Aleixo Sequeira appeared for hearing on 17/06/2020 and made his submissions on each point raised and as mentioned herein above under brief facts. Submission made by Shri Aleixo Sequeira are taken on record.
FINDINGS
The applicant Springfields (India) Distilleries is a registered partnership firm manufacturing Hand Sanitizers vide Lisence No. 999, issued by Directorate of Food and Drugs Administration dated 01.04.2020.
The applicant has asked for Advance ruling on the issue as to classification of the Goods namely “Hand Sanitizer” and rate of GST to be applied. Applicant also seeks opinion on whether Hand Sanitizers supplied by them are classifiable as essential commodity and to be exempt from GST.
Applicant is of the opinion that Hand Sanitizers are covered under HSN 30049087 and to be taxed @ 12% under GST.
On going through the submissions made by the applicant and through the provisions of the GST Act, this authority is of the opinion that Hand Sanitizers manufactured by the applicant are of the category of Alcobased hand sanitizers and are classifiable under heading 3808 of HSN to which rate of GST applicable is 18%. As far as exempting hand sanitizers as essential commodity since it is classified as such by Ministry of Consumer Affairs, Food and Public Distribution, this Authority is of the view that Exempted goods are covered by Notification no. 2 /2017/- Central Tax (Rate) dated 28/06/2017. Merely classifying any goods as essential commodity will not be the criteria for exempting such Goods from GST.
In view of the above facts and provisions the ruling is given as under:
ORDER
ADVANCE RULING UNDER SECTION 98 OF THE CGST/GGST ACT, 2017.
The ruling so sought by the Applicant is accordingly answered as under:-
Alcohol Based Hand Sanitizers manufactured by the applicant are covered by HSN 3808 and are accordingly taxable at appropriate rate as per schedule entry notified vide Notification No. 1 Central Tax (Rate) dated 28/06/2017.
