Industry in Telangana sulks over 18 per cent GST on alcohol-based sanitisers

HYDERABAD: The recent ruling of an Authority for Advance Ruling (AAR) that 18 per cent GST will be levied on alcohol-based sanitisers has attracted criticism from Telangana's industry fraternity.  

Many term it as "unwarranted" as it may impose further stress on manufacturers during the pandemic. The ruling will have a greater impact on end customers, with prices of sanitisers slated to increase. After the pandemic broke out, Telangana, like several other States, took to producing sanitisers from alcohol to meet the huge demand.

However, the recent ruling of the Goa-bench of Authority for Advance Ruling has irked many. Speaking to Express, Dr Ranga Reddy, the CEO of Sanmed, a company specialising in manufacture of disinfectants and sanitisers said, "Such knee-jerk decisions won’t help industries but create more hurdles for us. In the case of GST, if one is making a sale, they are liable to pay to the government. Healthcare institutions do not pay in advance or cash. They generally have a 60-day credit. This sort of situation puts a lot of stress on industries which are already cash-strapped due to the pandemic."

Apart from industries, this ruling will have a major effect on customers, said Federation of Telangana Chambers of Commerce and Industry (FTCCI) member Srinivas Garimella. He said that industries will pass on the extra charges to the customer by increasing prices.