The Director General of GST Intelligence (DGGI) has alerted the GST officials of large evasion by alcohol-based hand sanitiser manufacturers by misclassifying the same as goods under 12% tax instead of 18%.
In a letter to Principal Chief Commissioners and Chief Commissioners, the GST intelligence unit has said that some of the sugar mills and distilleries are engaged in manufacturing and supplying alcohol-based hand sanitisers and are misclassifying them as items under HSN Code 3004, which are taxed at 12 per cent under GST instead of HSN Code 3808, which are taxed at 18 per cent.
Items of medicinal and therapeutic use are kept under HSN code 3004, while items like fungicides, pesticides, biodiesel, etc are kept under HSN Code 3808.
The letter of the DGGI hints at large GST evasion due to misclassification of hand sanitisers.
It has prepared a list of 62 manufacturers/suppliers by identifying them with the help of online shopping platforms like Amazon, Flipkart, Snapdeal, PayTm, etc.