Government reduces GST rates; sanitary pads, rakhis exempted

The Goods and Services Tax (GST) Council on Saturday slashed GST rates on several products of daily use, including sanitary pads and ‘rakhis’, during its 28^th meeting held in Delhi.

Conceding a year-long demand, while GST tax on sanitary napkins was cut to zero from 12 per cent, rakhis were also exempted from the year-old tax regime.

“GST Council cuts tax rate on an array of products. Sanitary napkins, rachis and small handicrafts have been exempted from GST,” Union Finance Minister Piyush Goyal told reporters after the meeting.

Footwear, small televisions, water heater, electric ironing machines, refrigerators, lithium ion batteries, hair dryers, vacuum cleaners, food appliances and ethanol were among the items on which the GST was slashed.

Also Read | Sanitary napkins now exempt from GST regime 

In a bid to woo the middle class in an election year, the government reduced GST on 17 items used by them viz Paints, Refrigerators, washing machines, vacuum cleaners, storage water heaters, TVs up to 68 cm was reduced from 28 to 18 per cent.

To avoid classification disputes, GST tax rates on worked up Kota stone, sand stone and similar quality of local stones were cut from 18 to 12 per cent.

Besides, the GST on handbags, jewellery box, wooden box for paintings, artware of glass, stone endeavour, ornamental framed mirrors and handmade lamps was reduced to 12 per cent.