Sanitary napkins exempted from GST

Lloyd Doyle
July 21, 2018

The Goods and Services Tax Council has made a decision to exempt sanitary napkins from taxation, interim Union Finance Minister Piyush Goyal said on Saturday after the 28th meeting of the council in New Delhi. Also, rakhis, sal leaves, the raw materials used to make regular brooms have also been fully exempted from being charged under GST.

GST on mixer grinder, perfumes, cosmetics, shavers, water heaters, vacuum cleaner, washing machines have been reduced from 28% to 18%, while footwear costing less than Rs 1,000 and urea will now attract 5% tax.

"There will be minimal impact of these decisions on revenue collections".

Goyal said that while GST tax on sanitary pads was cut from 12% to zero, rakhis were exempted from the tax.

The rate cut applies to footwear, small televisions, water heater, electric ironing machines, refrigerators, lithium ion batteries, hair dryers, vacuum cleaners, food appliances and ethanol, among others.

"I think the 28% tax slab should be done away with", said Delhi Deputy Chief Minister Manish Sisodia, who holds the finance portfolio.


Talking to reporters about the GST Council Meet in the afternoon, Sisodia said that the quarterly returns for traders with a turnover of up to Rs 5 crore have been given a nod by the GST Council.

Earlier the matter was highlighted after a plea seeking exemption of sanitary pads from GST had surfaced.

The controversial reverse charge mechanism (RCM) has also been deferred until September 2019.

E-commerce platforms and traders dealing in goods that are liable for GST will have to register for GST. Keeping this in mind, GST Council in October, 2017 had temporarily suspended RCM, as it was increasing compliance burden on taxpayers.

It has now been pushed till September next year.

The council also approved about 50 categories of amendments in GST-related laws, with a broader idea to reduce compliance burden, simplify the indirect tax system and bring more entities under the tax net. He will not have to file any more returns.

Other reports by Iphone Fresh

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