DIRECTORATE GENERAL OF GST INTELLIGENCE
West Block – 8 Wing No. 6, 2nd Floor
R K PURAM NEW DELHI – 110 066
Phone 011-26174191 Fax 011-26102552
F. No.562/INT/DOGI/HQ/2018/17025 to 17045 Date: 10.06.2020
Pr. Chief Commissioner/ Chief Commissioner, CGST & CX
All CGST and CX Zones (List Attached)
Central Economic Intelligence Bureau, New Delhi, has, vide F. No. 01/JS/E1/2020-CEIB dated NIL (copy enclosed) informed that some manufacturers of “Hand Sanitizcrs (Alcohol based)” arc wrongly classifying the said item under tariff heading 3004 (12% GST) whereas the said item is liable to be classified under tariff heading 3808 (18% GST). In this regard, classification opinion of WCO has been relied upon. It has also been informed vide above-mentioned letter that Sugar Mills and distilleries are also engaged in manufacturing/supplying alcohol-based hand sanitizers and are classifying the same under tariff heading 3004 (12% GST) of HSN whereas the same arc correctly classifiable under heading 3808 (18% GST) of HSN. Thus, the misclassification of ‘Hand sanitizers’ (Alcohol based) appears to have resulted in substantial evasion of GST.
2. Intelligence furnished by the CEIB has been further developed in the DGGI liqrs. A list of 62 manufacturers/suppliers of above said item was prepared by the DGGI Headquarters by identifying the manufacturers with the help of the online shopping platforms, such as Amazon, Flipkart, Snapdeal, PayTm etc. and has been analysed in DGGI. While the mis‑classification of Hand Sanitizers produced under various established brands is being looked into by various Zonal Units of DGGI, it is requested that misclassification of Hand Sanitizers manufactured/supplied by sugar factories/distilleries in your jurisdiction may kindly be verified at your end in order to plug any revenue leakages.
3. The results achieved in this regard may he communicated to this office in due course of time.
4. This issues with the approval of Principal Director General, DGGI.
(Sanjecv Kumar Singh)
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