HSN Code and GST Rate for Hand Sanitizers in India

When conducting business or navigating tax regulations in India, it's crucial to understand the specific Harmonized System of Nomenclature (HSN) code and Goods and Services Tax (GST) rate applicable to various products. In this article, we will explore the HSN code and GST rate for hand sanitizers, providing valuable insights for both business owners and tax professionals.

HSN Code for Hand Sanitizers

In India, the HSN code assigned to hand sanitizers is 3808. The HSN code is a standardized system used globally to classify goods and services for customs, trade, and tax purposes. This code is essential for accurate documentation, taxation, and international trade.

GST Rate for Hand Sanitizers

Hand sanitizers are subject to a Goods and Services Tax (GST) rate of 18%. The GST is a multi-stage, destination-based tax that is levied on the supply of goods and services in India. The 18% GST rate is based on the current tax policy and may be subject to change as per government notifications.

Recent Legal Developments

The Goa Bench of the GST Authority for Advance Ruling provided a significant clarification on the tax classification of alcohol-based hand sanitizers. Springfield India Distilleries sought an advance ruling regarding the HSN code and GST rate applicable to hand sanitizers. The ruling confirmed that alcohol-based hand sanitizers fall under HSN code 3808 and attract a GST rate of 18%. It was also clarified that merely classifying a product as an essential commodity does not exempt it from GST. It is essential to consult the latest government notifications for the most up-to-date information.

Clarification from the Government

The Indian government later issued a clarification on the GST rate for alcohol-based hand sanitizers, reaffirming the 18% GST rate. This clarification ensures that the tax policy is consistent with current market needs and business practices. Taxpayers should regularly check for any updates or changes in the HSN code and GST rate, as these regulations can evolve over time.

For business owners and professionals, it is crucial to stay informed about the latest tax regulations. By understanding the HSN code and GST rate for hand sanitizers, businesses can ensure compliance and navigate the tax landscape effectively. Consulting legal experts or tax professionals can provide additional guidance and ensure that all tax requirements are met.

Note: This information is provided for general guidance. Always consult with a tax professional or the relevant authorities for accurate and specific tax advice.

Conclusion

The HSN code and GST rate for hand sanitizers are fundamental elements in understanding the tax implications of these products in India. By familiarizing yourself with the HSN code 3808 and the 18% GST rate, businesses can streamline their tax processes and avoid potential penalties. Regular updates and consultations can ensure compliance and efficiency in your tax-managing practices.