Investigation had revealed that there is major tax evasion happening in supply of alcohol-based disinfectants known as hand sanitisers. It is believed that products have been sold by classifying under incorrect harmonised system of nomenclature (HSN) for the product and it is estimated that government had incurred a loss of at least Rs50 crore to the exchequer since the launch of GST. It was pointed out in the intelligence developed by the Central Economic Intelligence Bureauthat many sugar mills and distilleries are mis-classifying hand sanitisers under the HSN code 3004 instead of the 3808. The GST rate is 12% for items under the former code and 18% for the latter.
https://www.financialexpress.com/economy/gst-evasion-on-hand-sanitisers-being-probed/2018782/
