The Goods and Services Tax (GST) Council on Saturday decided to reduce tax rates for more than 50 item including sanitary napkins which will attract zero tax from July 27, 2018.
Finance Minister Piyush Goyal said after the 28th meeting of GST Council that all the items are related to common people which will give major relief to them.
According to him, the GST council has decided to reduce tax rates on several general-used items like TV, washing machines and refrigerators. Apart from that the council has now put sanitary napkins under the exempted category.
The new rates would come into effect from July 27th. The rate reductions is estimated to cost government exchequer of more than Rs 6000 crore.
According to Goyal, rates for 17 white goods including — Washing machine, Refrigerators, TV, Video games, Vacuum cleaners, Trailers, Juicer mixer, Grinders, Shavers & Hair driers, water cooler, water heaters, Lithium iron batteries, electric iron cut by 10 per cent from 28 per cent to 18 per cent. GST rate of 18 per cent will be applicable to TVs up to 68 cm (27 inch) in size.
Goyal said that GST taxation have been provided to Agriculture, farming and food processing industry; Education, training and skill development and Pension, social security and old age people.
According to him, hotel industry has been given major relief by providing that the rate of tax on accommodation service shall be based on transaction value instead of declared tariff.
Services provided in sectors like banking, IT have been provided relief by exempting services supplied by an establishment of a person in India to any establishment of that person outside India.
He said that as a green initiative, GST on supply of e-books has been reduced from 18 to 5 per cent.