Check GST rates and HSN codes for masks, sanitizers, and PPE. Includes the Ministry’s clarification on alcohol-based sanitizer taxes.
In 2020, the COVID-19 pandemic significantly increased demand for face masks and hand sanitizers, establishing them as vital commodities for social distancing and maintaining proper hygiene. Consumers should understand their pricing and maximum retail price (MRP) to prevent potential overcharging. The appropriate Goods and Services Tax (GST) rate for hand sanitizers has been a subject of ongoing discussion. However, various advance rulings and a communication from the Director General of GST Intelligence have consistently classified alcohol-based hand sanitizers under HSN TH 3808, attracting an 18% GST rate, rather than TH 3004 (Medicaments). A definitive clarification from the Central Board of Indirect Taxes and Customs (CBIC) is expected to provide final clarity on this matter. Additionally, the Ministry of Finance recently confirmed that the GST rates for masks and hand sanitizers would not be changed or lowered. This decision stems from the fact that reducing the GST rate on hand sanitizers from 18% would result in an inverted tax structure, as the raw materials used in their production are also subject to an 18% GST. Consequently, Goods and Services Tax rates significantly influence the final pricing of these products.
HSN Codes and GST Rates for Common Household Hygiene Items
| Item | Description | HSN Code | GST Rate |
|---|---|---|---|
| Cotton face masks | Woven fabrics of cotton; HSN code varies depending upon the extent of cotton used and weight. | 5208 to 5212 | 5% |
| Face masks other than cotton | Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replaceable filters. | 9020 | 12% |
| Hand wash | Organic surface-active products and preparations for washing the skin, in the form of liquid or cream. It should have been put up for retail sale, whether or not containing soap, paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent. | 3401 | 18% |
| Alcohol-based hand sanitizer | Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products (hand sanitizers fall under the category of disinfectants) | 3808 | 18% |
| Gloves | Articles of apparel and clothing accessories (including gloves, mittens and mitts), for all purposes, of vulcanised rubber other than hard rubber (other than surgical gloves). | 4015 | 18% |
| Disinfectants | Organic surface-active agents (other than soap); surface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading 3401. | 3402 | 18% |
| Tissue paper or napkins | Cellulose handkerchiefs, cleansing tissues, towels, napkins, etc. | 4818 | 18% |
HSN Codes and GST Rates for Office and Factory Personal Protective Equipment
Business establishments are also providing their employees with face masks and hand sanitizers. Beyond the items listed above, workers in factories and hospitals may require additional medical gear, as detailed below:
| Item | Description | HSN Code | GST Rate |
|---|---|---|---|
| Face shields & PPE | Plastic-based protective garments and sheets. | 3926 | 18% |
| Hazardous waste disposal bins | Closures made of plastic for disposal of hazardous waste. | 3923 | 18% |
| Protective spectacles | Spectacles, corrective (other than goggles for correcting vision) | 9004 | 12% |
| COVID-19 Diagnostic Test Kits | Drugs or medicines including their salts and esters and diagnostic test kits. | 30 | 5% |
| Temperature check equipment | Infrared thermometers, pyrometers, barometers, psychrometers and hygrometers. | 9025 | 18% |
| Ventilator | Artificial respiration or other therapeutic respiration apparatus and medical grade oxygen used in oxygen cylinders. | 9019 | 12% |
