GST rate cut on 50 items

GST rate cut on 50 items

The GST Council accepted a longstanding demand for exempting sanitary pads as the GST tax was cut from 12 per cent to zero.

Sanitary napkins have been exempted from the Goods and Services Tax (GST), Maharashtra finance minister Sudhir Mungantiwar said on Saturday after a meeting of the GST Council. A high GST rate on sanitary napkins had imposed previous year had triggered howls of protest from consumer activist and women groups.

Items on which GST rates were reduced include footwear, small television sets, water heaters, refrigerators, lithium-ion batteries, hair dryers, vacuum cleaners, food appliances and ethanol.

In terms of tax returns, Sisodia said quarterly returns for traders having turnover up to Rs 5 crore have been approved by the GST Council.

Speaking to reporters on the sidelines of the 28th GST Council meeting, the minister also said that tax on bamboo also has been slashed to 12 pecent. He said, GST on imported urea and ethanol sold to oil companies for blending with petrol and diesel has been reduced to 5 per cent.

The value limit of footwear was enhanced from Rs 500 to Rs 1,000 for 5 percent rate, Goyal informed.

The tax on handbags, jewellery boxes, wooden boxes for paintings, glass artware, ornamental framed mirrors and handmade lamps, among other things, have been reduced to 12%.

The council also approved the proposal to allow quarterly return filing for taxpayers with a turnover of upto Rs 5 crore, a move that will benefit almost 93 percent of tax assessees as they would now be required to file returns only once in three months.

Mr Goyal said, GST council has cleared 46 amendments which will be passed in Parliament.

GST on mixer grinder, perfumes, cosmetics, shavers have also been reduced from 28 percent to 18 percent, the FM said.

A new set of simpler return filing forms - Sahaj and Sugam - are also in the works that would be finalised soon, Goyal said.

Sources said rate cuts and certain clarifications will have revenue impact of Rs 10,000 crore-Rs 11,000 crore annually. This was the first Council meeting he chaired after taking charge of the Finance Ministry. The reverse charge mechanism was already on hold until September 30 this year.

Given below is a list of revised GST rates.