Goods and Services Tax rates slashed; Government exempts sanitary napkins, rakhi and other items

It came as a big relief to the citizens of India as Goods and Services Tax (GST) Council slashed the rates on almost 88 items. A large no. of items including ACs, phone batteries, vacuum cleaners, television, washing machines and refrigerators etc can now be available at lesser tax rates. Goods And Services Tax

It was decided after the 28th meeting of the GST Council held on 21^st July, 2018. With the reduced GST, the consumer economy would get a big boost. The biggest highlight of the council was sanitary pads have been exempted from GST. Know more about the details of the meeting. Goods And Services Tax

Apart from sanitary pads, there are several items which have got fully exemption from GST. Rakhi, handicrafts, stone, marble, wooden statues, broom, compost and Sal leaves wouldn’t be taxed anymore.

In the meeting, electronic consumables like refrigerators, paints, water heaters, washing machines, food grinder, mixer, televisions up to 68 cms, and mobile phone batteries etc have been lowered from 28 to 18 percent. The list also includes perfume and toilet spray.

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On handbags, jewellery boxes, Artware glass, handmade lamps and bamboo products, GST would be now charged at 12 percent. While tax on ethanol to be used in autofuel blending, handloom carpets and e-books have been reduced to 5 percent. The footwear worth ₹ 1000 would be now taxed at 5%.

Impact on lower tax rates on exchequer Goods And Services Tax

This decision to reduce the GST rates would cost the exchequer approximately ₹ 6000 crore a year. it is expected that this loss would be recovered from income tax payers.

The meeting was chaired by interim Finance minister Piyush Goyal. He said that all the decisions were taken unanimously and would come into effect from 27^th July. The next GST council meet is scheduled to be held on 4^th August.