Court Buzz, GST

P&H HC to GST Council: “Resolve classification of Ayurvedic hand sanitizers”.

Case: Haryana Ayurvedic Drugs Manufacturers v/s CGST

Forum: Punjab & Haryana High Court


The Haryana Ayurvedic Drugs Manufacturers Association has preferred the instant writ petition seeking quashing of show cause notices issued by the GST authorities to the manufacturers of the “Ayurvedic Unani Sidha (AUS) ingredients- bases sanitizer” for depositing the GST at the Tariff Rate of 18% under the HSN Code 3808-94 instead of 12%.

Key points

The Ld. Counsel for the Petitioner submitted that the impugned show cause notices have been wrongly issued by the Respondent by misclassifying the sanitizers as “alcohol based sanitizer”, whereas the sanitizers being manufactured by them are Ayurvedic/ Unani/ Sidha (AUS) ingredient based sanitizers The AUS ingredients based sanitizers come within the 12% GST bracket and not 18% as levied by the authorities. It is submitted that a comprehensive representation in this regard has already been made by the Petitioner to Respondents.

The Ld. Counsel for Respondents submitted the representation of the Petitioner, shall be forwarded to the establishment of the GST Council for appropriate consideration in accordance with law.The Court accordingly disposed off the writ petition and hoped that the  GST Council would take up the issue at the earliest.

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