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HR & PB HC: Consider PIL to Classify AUS Ingredient Based Sanitizers within 12% GST, Not 18%

12% GST for AUS Ingredient Based Sanitizers Not 18%

A PIL was filed to consider AUS Ingredient Based Sanitizers under GST at 12% rate and now in this matter, the Punjab and Haryana High Court ordered GST Authorities to consider the Public interest litigation (PIL) filed for classifying the Ayurvedic/ Unani/ Siddha (AUS) Ingredient Based

.

In this matter, the Haryana Ayurvedic Drugs Manufacturers Association (HADMA) is the petitioner and they received “show cause notices” by the Taxation authorities to levy GST at the rate of 18% as per the HS Code 3808-94 for manufacturing the “AUS ingredients- bases sanitizer”. Here petitioner believes that GST at 12% will be applicable instead of 18% as stated in the show-cause notice. Thus they have gone with the instant writ petition seeking quashing of the show-cause notice.

The petitioners said that the GST authority classified their Sanitizer the same as “alcohol-based sanitizer” thus the notices have been wrongly issued by the GST Authority (respondent). They further added that their manufactured sanitizers are Ayurvedic/ Unani/ Siddha (AUS) ingredient-based thus they are completely different from alcohol-based sanitizers. And if the sanitizers are different then thor AUS Ingredient Based Sanitizers will belong to 12% GST Rate Slab and not the 18%

as levied by the authorities.

It has been observed that a comprehensive representation in the same regard has been already represented in front of the respondents, but they haven’t taken any action yet.

The Division Bench In the High Court of Punjab & Haryana at Chandigarh consisting Justice Jaswant Singh and Ashok Kumar Verma directed the

for proper consideration of the petitioner’s contention or reclassification of Ayurvedic/ Unani/ Siddha (AUS) Ingredient Based Sanitizers within 12% GST instead of 18%.

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