(LiveMint)
The GST Council 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% has been rationalised 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%. The revised tax rates will come into effect from 27 July.
“Every state wanted that the rates on these items be lowered so that the middle income households are benefitted … It has also been decided that the GST Council will rise above revenue consideration and focus more on job creation and economic growth,” finance minister Piyush Goyal said. Refrigerator, washing machine, small screen TV, storage water heaters, paints and varnishes, will henceforth attract 18% GST as against 28% at present.
Tax rate on ethanol has been slashed to 5% from 18% at present. Footwear costing up to ₹1,000 will now attract 5% GST. So far, footwear up to ₹500 attracted 5% GST, and those having retail sale price of over ₹500 attracted 18% rate. Sanitary Napkins, which attract 12% tax, and fortified milk, which was taxed at 18%, have been exempt from the new indirect tax. Also idols made of stone, marble, wood, rakhi not embedded with stone, phool jhadu, sal leaves, too have been exempted. “GST Council today approved reduction in rates of 88 goods and services. Money in the hands of all sections of society– the poor, households, women, farmers and senior citizens,” Goyal tweeted late night. Earlier, in the press conference the minister had said that the rates were rationalised on 100 items.
