to consumers. At its 28th meeting, the GST Council, chaired by Acting Minister of Finance, Piyush Goyal, decided to reduce tax rates on a number of general-purpose items such as television, washing and refrigerators. Apart from this, the board has now put sanitary napkins in the exempt category. The new rates will come into effect on July 27th. The rate cuts are estimated to cost the government around Rs 7,000 crore.
Earlier, the council revised tax rates on 29 articles in January. The largest rate rationalization decision was made by the board in November 2017, when more than 200 items were pbaded to lower tax brackets by 28%, 18% and 12%.
Here are the main decisions taken today at the 28th meeting of the GST Board:
- Rates for 17 white goods, including – Washing machines, Refrigerators, TV, Video Games, Vacuums, Trailers , Juicer, Grinders, Shavers & Hair Dryer, Water Chiller, Water Heater, Lithium Iron Batteries, Electric Iron – 10 percent cut from 28 to 18 percent. The 18% GST rate will apply to TVs up to a maximum size of 68 cm (27 inches)
- Sanitary napkins are cheaper since they have been categorized as exemptions. Towels were taxed 12 percent earlier.
- Simplified return return process approved. Quarterly returns for the turnover up to Rs 5 crore instead of monthly deposits. However, the payment of the tax would be monthly. Nearly 93% of merchants and small businesses will benefit. The exemption limit for traders in Assam, Arunachal Pradesh, Himachal Pradesh, Himalayas, Sikkim, rose from Rs 10 lakh to 20 lakh [19659008] The Council also approved the process of simpler filing of returns.
- Taxes based on real tariffs not fixed on declared customs duties
- Paints, mastics and varnishes rates 28 per cent to 18 per cent
- Commodities 1,000 rupees [19659014] Rate of taxation of ethanol gasoline at 5 per cent instead of 18 per cent earlier
- GST rate for all leather goods reduced to 28 percent
- GST rate cut to 18% for special purpose vehicles, work trucks, trailers
- Price on scents, toilet spray now under 18 percent slab
- ] Marbles, deities of stone and wood are exempt. Rakhis, enriched milk also exempted.
- No decision on sugar production to be determined at next meeting
- GST on bamboo flooring graded 12 percent
- GST on handbags, jewelry box, wooden box for paintings, glbad artware, stone work, framed mirrors, handmade lamps, etc. . reduced to 12%
- Tax on Goods and Services on Imported Urea reduced to 5%
- The GST Council approved 46 amendments which will be Adopted in Parliament
