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Sanitary napkins to be tax-free from today

Despite the GST rate being slashed, the price of sanitary napkins will only be marginally reduced or can even remain unchanged owing to input tax credit

Sanitary napkins to be tax-free from today
SHARES

Following the July 27 notification of the Goods and Service Tax (GST) Council, a total of 88 products like sanitary napkins, footwear and refrigerators will now be available at cheaper rates. At the GST Council meeting last week, under the chairmanship of Finance Minister Piyush Goyal, it was decided that 18 per cent GST will be levied on these items instead of 28 per cent from July 27.

While, items like washing machines, small screen TVs, water heaters, paints and varnish are to get inexpensive, the government has decided to exempt sanitary napkins from GST. Earlier, 12 per cent tax was levied on sanitary napkins.

Also Read : The Union Government Exempts Sanitary Napkins From The GST Slab


A slight decline in sanitary napkin prices

According to experts, despite the GST rate being slashed, the price of sanitary napkins will only be marginally reduced or can even remain unchanged as the producers will no longer be able to claim input tax credit (ITC). Earlier, when 12 per cent GST was imposed on sanitary napkins, the government would refund taxes paid on the input to avoid cascading or double- taxation.

However, since the final product would not be taxed now, manufacturers will be unable to take advantage of ITC, which would be an additional cost to them.

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