GST Council Slashes Rates: Only 35 Goods In Highest Tax Bracket
It looks like this time the GST favoured women the most. Sanitary napkins are exempted from 12% GST list after a hard-driven protest. Other than this, GST on handbags, jewellery boxes and mirrors has been reduced to 12%
Seems like Government is all set to celebrate monsoon by making GST simpler and convenient. The GST council in its 28th meeting chaired by Finance Minister Piyush Goyal on Saturday took some major decisions to benefit the common man. Goyal said that the target of the Council is to simplify the complexity of tax regime, rationalise tax rates and to give relief to small businesses and not merely revenue collection. The Council is soon to increase the composition scheme limit from 1 cr. to 1.50cr while putting efforts to make GST return filing process easier. The new GST rates will become effective from 27th July.
Here is what the Council gifted to nation’s taxpayers:
- The council approved the quarterly filing of return for the small taxpayers having turnover below Rs.5 crore as an optional facility. Instead of filing GST monthly, small-scale businessmen can pay the return after every 3 months. Around 93% traders will get benefitted.
- The Council recommended increasing the threshold exemption limit for registration from 10 lakhs to 20 lakhs in Assam, Meghalaya, Arunachal Pradesh, Uttarakhand, Sikkim and Himachal Pradesh.
- It looks like this time the GST favoured women the most. Sanitary napkins are exempted from 12% GST list after a hard-driven protest. Other than this, GST on handbags, jewellery boxes and mirrors has been reduced to 12%.
- Keeping the celebrations in mind there will be zero GST on Rakhi, not on those made of precious or semi-precious material like gold or silver. GST on other items like Stone/Marble/Wood deities, coir pith, siali leaves and their products,sabai ropes, Khali dona, and raw material for jhadoo also fall down to zero.
- 5% GST is put on shoes which cost less than Rs.1000. In its major decisions, the Council has reduced the GST on certain utility items and home appliances by 10%. GST on washing machine, refrigerator, television (upto size of 68cm), vacuum cleaner, mixer grinder, shaver and hair dryer, water cooler and electric iron is determined from 28% to 18%.