Punjab & Haryana HC directs GST Authorities to consider PIL for Reclassification of AUS Ingredient Based Sanitizers Within 12% GST instead of 18%

The Punjab and Haryana High Court directed the GST Authorities to consider PIL for reclassification of Ayurvedic/ Unani/ Siddha (AUS) Ingredient Based Sanitizers within 12% GST instead of 18%.

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

The petitioners contended that the impugned show cause notices have been wrongly issued by the respondent-authority by misclassifying the same as “alcohol based sanitizer”, whereas the sanitizers being manufactured by them are Ayurvedic/ Unani/ Siddha (AUS) ingredient based sanitizers and thus different from alcohol based sanitizers.

It is further argued that the sanitizers manufactured by them 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 to respondents, however no action on said representation has been taken till date.

The Division Bench of Justice Jaswant Sigh and Ashok Kumar Verma directed the GST Council for appropriate consideration of the contention of the petitioner or reclassification of Ayurvedic/ Unani/ Siddha (AUS) Ingredient Based Sanitizers within 12% GST instead of 18%.

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