Hand sanitizer makers are committing massive GST theft! Revenue Department warns
The Director-General of GST Intelligence (DGGI) has warned Goods and Services Tax (GST) officials that companies making alcohol-based sanitizers are committing massive evasion.
How evasion is being done?
In a letter to all or any the Principal Chief Commissioners and Chief Commissioners of GST, the GST Intelligence Unit has said that some sugar mills and distilleries are producing and managing alcohol-based hand sanitizers. they’re categorizing this GST into HSN Code 3004 which attracts only 12 percent GST, while the sanitizer falls under HSN Code 3808 which should attract 18 percent GST.
GST of 18 percent on the sanitizer
The GST Intelligence Unit says that medical and therapeutic use items fall into 12 percent GST, while fungicides, pesticides, biodiesel, etc. attract 18 percent GST. Sanitizer comes under another category. during this letter, DGGI has indicated that GST has been stolen during a big way thanks to the misclassification of sanitizer during this way.
DGGI has also identified 62 manufacturers and suppliers who are selling it through Amazon, Flipkart, Snapdeal, Paytm, etc.
Government also faraway from the list of essential goods
Significantly, the govt has removed masks and sanitizers from the list of essential goods. The Indian Medical Device Industry (AiMeD) wrote a letter to the secretary of the buyer Affairs Department, which said that cases of coronavirus are increasing within the country. In such a situation, 2-3 ply masks should be kept within the list of essential goods for the subsequent 6 months. However, a review was made about the sanitizer. But bypassing this recommendation, a replacement list was released by the govt on Dominion Day, which didn’t include sanitizers and masks.
The demand for masks and sanitizers increased within the country as soon because the coronavirus crisis occurred. insight of this, the govt included them within the list of essential goods in March, when the worth of 100 ML sanitizer was asked to not be raised above Rs 100. there’s a ban on any quite black market by being included within the list of essential goods.