Modi govt slashes GST rate on several products: Here're details

What has changed in the process of GST returns filing

What has changed in the process of GST returns filing

The 28th GST Council meet has chose to fully exempt sanitary napkins from GST, from the existing 12 percent. Earlier, sanitary napkins were taxed at 12% which had attracted a lot of criticism.

The Goods and Services Tax Council on Saturday slashed rates on over 50 products in a move aimed at appealing to traders and the middle classes as Prime Minister Narendra Modi's government eyes next year's elections.

Earlier this year, Akshay had starred in his home productions film Pad Man, which narrated the story of Arunachalam Muruganantham, who introduced the low-priced sanitary napkins.

Among items on which GST was reduced include footwear, small televisions, water heater, electric ironing machines, refrigerators, lithium ion batteries, hair dryers, vacuum cleaners, food appliances and ethanol. "The reduction (of GST rates) will have nominal impact on the revenue", acting finance minister Piyush Goyal told media after the meeting here on Saturday, adding that 100 items will be impacted by this change.

Goyal asserted on the importance of reducing the tax on ethanol, as not only is it used for blending with petrol and diesel, it is also vital for the sugar industry, and will thus be very beneficial for the sugarcane farmers. They will have to, however, pay taxes monthly.

Previously there were around 226 goods in the 28 per cent category when GST was implemented on July 1, 2017.

Mr Goyal said, GST rate on handbags, jewellery box, wooden box for paintings, artware of glass, stone endeavour, ornamental framed mirrors and handmade lamps were reduced to 12 per cent. The new prices will be effective from July 27.

The Council has also approved quarterly filing of return for the small taxpayers having turnover below Rs 5 crore. "Simplification and rationalisation has been given maximum priority", Goyal said while briefing reporters after the 28th GST Council meeting here.

While hotels with tariff below Rs 1,000 are exempted from GST, those with tariff between Rs 1,000-2,500 are taxed at 12 per cent, those between Rs 2,500-7,500 at 18 per cent, and above Rs 7,500 at 28 per cent.

Besides revenue collection, the GST council will now focus on job creation as well, the Finance Minister said.

The GST Council will next hold a meeting on August 4, exclusively catering to the needs of the Micro, Small and Medium Enterprise (MSME) sector. In its meeting in November past year, the Council had reduced rates in over 178 items in the 28 per cent tax bracket.

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