On July 1, 2017, the central government introduced the Goods and Services Tax (GST). A year later, Finance Minister Piyush Goyal in the 28th meeting of the GST Council announced a rate cut for several goods.
One of the biggest takeaways from the announcement was the cut on sanitary napkins from the existing 12% to nil. This has come after several groups and individuals petitioned to the government to take away the charges levied on these items.
88 items have seen a reduction in the rate at which they were taxed.
According to a report in The Times of India, the Finance Minister said, “Every state wanted that the rates on these items be lowered so that the middle-income households are benefited. It has also been decided that the GST Council will rise above revenue consideration and focus more on job creation and economic growth.”
Do note that these rates will come into effect from July 27, 2018.
Here’s a look at what just got cheaper.
The following products were levied with 28% GST (the highest) and now have been reduced to 18%.
• Home appliances like washing machines, vacuum cleaners, food grinders and mixers, food or vegetable juice extractors, shavers, hair clippers, refrigerators, freezers including water coolers, milk coolers, refrigerating equipment for leather industry, ice-cream freezers etc.
• Video games;
• Television sets up to the size of 68 cm;
• Water heaters and immersion heaters;
• Paints and varnishes (including enamels and lacquers);
• Special purpose motor vehicles. For instance, crane lorries, fire fighting vehicles, concrete mixer lorries, spraying lorries.
The following products will now attract no tax:
• Sanitary Napkins
• Stone/Marble/Wood Deities
• Rakhi (other than that of precious or semi-precious material)
• Raw material used in brooms
• Fortified milk
• Saal leaves
• Coir pith compost
• Circulation and commemorative coins
Reacting to the announcement, the share prices of durable consumer stocks were trading higher earlier this morning.
Do let us know if these rate cuts have been beneficial to you.
(Edited by Shruti Singhal)