Kindly confirm the GST rate on PPE Kit.
Should Bill to be given Item wise or Composite rate wise. Since GST on Sanatizer is 18% and 5% on Mask, etc.
11 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 13 April 2020
You can charge item wise as per the said items...
Pawan Sehrawat
(Partner)
(91 Points)
Replied 13 April 2020
Just confirmed from sources.
Composite rate is 5%.
Shivam RC
(Student)
(23683 Points)
Replied 13 April 2020
Will it be treated as Composite Supply or Mixed Supply ???
As per my view, it should be treated as MIXED SUPPLY because Sanitizer and Surgical Masks are being supplied by making a combination of them i.e. PERSONAL PROTECTIVE EQUIPMENT ( PPE ).
As per the Provision of Section 2(74) of the CGST Act 2017, "Mixed Supply" means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
SANITIZER RATE : 18%
FACE MASK : 5%
And as per the Provision of Section 8 of the CGST Act 2017 i.e. "TAX LIABILITY OF COMPOSITE & MIXED SUPPLY", the GST Rate regarding Mixed Supply is : "mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the 'HIGHEST RATE OF TAX'. "
And the highest rate is of Hand Sanitizer i.e. 18%. Therefore the GST Rate on PPE should be 18%.
Different views, if any, is invited...
Disclaimer : This is my personal view. Consult it with more Experts before taking final conclusion.
As per my view, it should be treated as MIXED SUPPLY because Sanitizer and Surgical Masks are being supplied by making a combination of them i.e. PERSONAL PROTECTIVE EQUIPMENT ( PPE ).
As per the Provision of Section 2(74) of the CGST Act 2017, "Mixed Supply" means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
SANITIZER RATE : 18%
FACE MASK : 5%
And as per the Provision of Section 8 of the CGST Act 2017 i.e. "TAX LIABILITY OF COMPOSITE & MIXED SUPPLY", the GST Rate regarding Mixed Supply is : "mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the 'HIGHEST RATE OF TAX'. "
And the highest rate is of Hand Sanitizer i.e. 18%. Therefore the GST Rate on PPE should be 18%.
Different views, if any, is invited...
Disclaimer : This is my personal view. Consult it with more Experts before taking final conclusion.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 13 April 2020
Here.,
Sanitizer can be sale without mask...
Mask also can be sale without Sanitizer...
Sanitizer can be sale without mask...
Mask also can be sale without Sanitizer...
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 13 April 2020
As per Notification 20/2020 Custom ,dated : 09/04/2020
Ventilator, Sanitizer, PPE kit,Face Mask & Surgical Mask, Covid 19 testing kit is EXEMPTED.
Yes all above items falls under Exempted List
Ventilator, Sanitizer, PPE kit,Face Mask & Surgical Mask, Covid 19 testing kit is EXEMPTED.
Yes all above items falls under Exempted List
Shivam RC
(Student)
(23683 Points)
Replied 13 April 2020
@ Pankaj Sir,
I agree that the Basic Customs Duty and Health Cess levied @ 5% is EXEMPTED till 30th September 2020 for the PPE's, Ventilators etc. But no such exemption is being provided for the GST portion.
However, the Medical Department has requested the Government to remove GST on Hand Sanitizers and Mask. But no decision regarding the same came from the government side.
I agree that the Basic Customs Duty and Health Cess levied @ 5% is EXEMPTED till 30th September 2020 for the PPE's, Ventilators etc. But no such exemption is being provided for the GST portion.
However, the Medical Department has requested the Government to remove GST on Hand Sanitizers and Mask. But no decision regarding the same came from the government side.
Pawan Sehrawat
(Auditor)
(36 Points)
Replied 14 April 2020
We confirmed from the PPE Kit supplier, they said, we charge GST @ 5% ONLY. It seems PPE Kit may have a different HSN, that is why they charging GST @ 5%, and NOT the Highest rate as apply on any of the item in that combo.
and Off course selling goods in combo is called as MIXED Supply, and NOT Composite supply.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 14 April 2020
Dear Mr . Shivam
I agree with you .
The exemption is on Custom Duty & Health Cess. Since no information in GST the reduce rate on same , the GST as per existing Rate is applicable
I agree with you .
The exemption is on Custom Duty & Health Cess. Since no information in GST the reduce rate on same , the GST as per existing Rate is applicable
Rohit Kumar Singh
(Founder - TaxMarvel Consulting Services LLP)
(9467 Points)
Replied 19 April 2020
Hi, supply of PPE Kits will be taxed for each individual item. Taxable as composite supply i.e. each item will have different gst rate. Pls provide me details of each item with Hsn code for providing rate
(Guest)
GST on PPE is leviable @ 12% . Components of PPE(Personal Protective Equipment) include goggles, face shield, masks, gloves, overalls, headcover and shoe cover. Sanitisers are not included in PPE as per the guidelines of Ministry of Health and Family welfare. Therefore GST applicability is as follows:
If price per piece is above Rs 1000 GST @ 12%
If price per piece is below Rs 1000 GST @ 5%
Further GST rates on masks, sanitisers, and ventilators are as follows:
Masks @ 5%
Sanitizer @ 18%
Ventilators @ 12%
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