These Items May Get Cheaper From Today After GST Rate Cut

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    The GST rate cut announced on some 88 common use items in the GST Council's last meet chaired by Union Finance Minister Piyush Goyal will come into effect from July 27, 2018 making these goods cheaper.

    These Items May Get Cheaper From Today After GST Rate Cut

    The Council in its 28th GST meet held of Saturday moved some of the white goods from the highest tax slab rate of 28% to 18%. Consequently, small screen TVs, refrigerator, washing machine, water heaters will now attract 18% GST as against 28% previously. Also, paints and varnishes will also be charged a GST rate of 18%.

    Sanitary napkins, which until now attracted 12% GST, are transferred to the tax-exempt category of products. Earlier, it was feared that the price of sanitary napkins may go up as manufacturers will not be able to claim input tax credit (ITC) or the credit for taxes paid by them in respect of input raw material.

    However, finance ministry officials opined that prices in fact should decrease as the credit availed for taxes paid on inputs was just 2-4% while GST tax rate was 12%. It is expected that sanitary napkins could become cheaper by 5-10%.

    To ensure that end consumers benefit from the rate cut on sanitary napkins, Goyal has already asked the directorate general of anti-profiteering to keep a check on their pricing post the rate cut.

    Other items which will become cheaper from today include footwear priced up to Rs. 1000, ethanol etc.

    So, here's the complete list of items which will become cheaper with the reduced GST rate

    Item Earlier GST rates Reduced GST rates
    White goods including fridge, washing machine, storage water heaters, small screen TVs 28% 18%
    Ethanol 18% 5%
    Bamboo floorings 18% 12%
    Footwear priced up to Rs. 1000 5% ( for footwear priced up to Rs. 500)
    18% ( for footwear with sale price of more than Rs. 500) 5%
    Lithion ion batteries, food grinders, hand dryer, vacuum cleaner 28% 18%
    Sanitary napkin 12% Tax exempt
    Fortified milks, rakhi without stone, phool jhadu, sal leaves, idols made of stone, wood, marble   Tax exempt
    Supply of e-books 18% 5%
    Accomodation service provided by the hotel industry GST previously based on the declared value Will be based on the transaction value.
     

    Goodreturns.in

    Read more about: gst
    Story first published: Friday, July 27, 2018, 12:14 [IST]
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