GST Rate cuts

GST Council cuts rate on 88 items

            The GST Council on Saturday cut tax rates on 88 items, including footwear, refrigerator, washing machine and small screen TV, while the widely demanded sanitary napkins have been exempted from the levy.

          The highest tax bracket of 28 per cent has been rationalized further with rates on daily-use items like perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium ion batteries, being lowered to 18 per cent. The revised tax rates will come into effect from July 27. 

          Tax rate on ethanol has been slashed to 5 per cent from 18 per cent at present. 

          Footwear costing up to Rs 1,000 will now attract 5 per cent GST. So far, footwear up to Rs 500 attracted 5 per cent GST, and those having retail sale price of over Rs 500 attracted 18 per cent rate.

          In a major relief to women, the GST Council on Saturday decided to exempt sanitary napkins from the ambit of the Goods and Services Tax.   Apart from sanitary napkins,  deities made of stone, marbles and woods, commemorative coins circulated by the RBI or the government, fortified milk etc have also been exempted from the GST. 

           GST on handbags, jewelry box, wooden box for paintings, handmade lamps etc. have also been reduced to 12 per cent.

          The exemption limit for traders in Assam, Arunachal Pradesh, Himachal Pradesh and Sikkim has been increased from Rs 10 lakh to 20 lakh. Taxpayers who are yet to register under GST will be given on final extension till August 31 and any late penalty would be waived off.