India becomes latest country to scrap tax on sanitary towels

E-Books- Taxscan

India's interim finance minister, Piyush Goyal, said today: 'I am sure all mothers and sisters will be very happy to hear that sanitary pads are now 100 percent exempt from tax'.

Sanitary napkins were taxed 12 percent tax under the one-year-old GST regime, which attracted serious criticism from various quarters.

And now sanitary pads will not fall under any category of Good and Services Tax.

Unlike cement, sanitary napkins, which have been exempt from GST, are not intermediate products. "Rakhis have been exempted from GST, tax on ethanol has been cut to 5 per cent, small handicrafts have been exempted", Goyal said. Previously, they were taxed at 12 percent when the GST was launched in July 2017.

"Radio Mirchi's RJ Charu posted this funky picture of a pad that looks too cool for school, while comic Sumukhi Suresh kept it simple with her tweet that just said: "#lahukalagaan maaf" (tax on blood waived).

The highest tax bracket of 28 per cent has been rationalised further with rates on daily-use items like perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium ion batteries, being lowered to 18 per cent. Foreign manufacturers, however, would not be subject to input taxes and will also not have to pay any GST, putting them at a massive advantage.

While Goyal did not specify the quantum of revenue loss, Assam finance minister Himanta Biswa Sarma said the impact of rate cut on white goods alone would be '6,000 crore. Yet a few have raised questions about what the new rate will actually mean, and why the government had spent the a year ago arguing that a lower tax rate would be a bad thing. Those yet to register under GST will be given extension till August 31 without late penalty.

It was meant to unify India's economy into a single market, with four tax rates of 5, 12, 18 and 28 percent.

Tax filers with an annual turnover of less than Rs. 5 crore a year need to file returns on a quarterly basis while paying tax on a monthly basis. While the changes will offer relief to the middle-income households and small businesses, sources say the government stands to lose revenue to the tune of Rs 15,000 crore. Political compulsions may have led to some decisions, but the overall direction to lower rates and ease compliance is right and is likely to boost collections. Between Rs 2,500 to below Rs 7,500 GST is levied at 18 per cent and that of Rs 1,000 and below Rs 2,500 it is 12 per cent.

This is the fourth time since the roll out of the GST that the Council, chaired by Union Finance Minister and comprising state counterparts, has rationalised rates.

Earlier, the council had revised tax rates on 29 items in January.

Related News:



Most liked

Fortnite has crossed the $1 billion revenue mark
Despite the game being free, Epic is raking in monumental amounts of cash from the microtransactions within the cartoon shooter. Games like PUBG, H1Z1 and DayZ may have started the trend, but Fortnite's caused it to explode into the mainstream.

Attorney: Shooter's pause could leave door open for charges
Investigators say Michael Drejka fatally shot Markeis McGlockton, 28, after he was shoved to the ground. The sheriff says the Stand Your Ground law handcuffs his ability to make an arrest in a case like this.

Tiger Woods in contention at Carnoustie
The most anxious he looked all day was sitting watching Californian Schauffele play the 17th and 18th. Molinari didn't make a bogey on his way to a 69 while playing alongside Woods.

PTI’s Ikramullah Gandapur martyred in DI Khan attack
Journalists in Pakistan say they have come under unprecedented pressure from the authorities before the election. Former minister Sardar Ikramullah Khan Gandapur was killed in a bomb blast near his auto in DI Khan on Sunday.

Trump Says He's 'Not Thrilled' About US Interest Rate Hikes
Last month, the Fed raised its benchmark rate for a second time this year and projected two more increases in 2018. In return, China levied taxes on the same value of products from the United States, including soybeans.

Donald Trump's team say he looked 'weak' next to Vladimir Putin
Ron Johnson shared Ryan's opinion about Russian meddling, telling reporters that Putin's assessment was "completely wrong". The president said the summit was a first step building a bridge between the United States and Russian Federation .

Trump hails summit with Putin "a very good start"
Sen. "[The] posture of President Trump on Crimea is well known, and he stands firmly by it". You got me, '" said Trump, invoking a television detective.

Pres. Trump: Putin made 'incredible offer' in Russian hacking case
At the same time, Trump has floated the idea of allowing Russian Federation back into the G-7, making it the G-8 once again. Putin said that issue came up during their private meetings, but Trump did not discuss it during the press conference.

Obama in ancestral home Kenya to launch sister's project
According to the former Prime Minister's private secretary Dennis Onyango, the ODM leader will be in South Africa until Friday . The theme of the lecture will be "Renewing the Mandela Legacy and Promoting Active Citizenship in a Changing World".

US, North Korea to resume search for remains from Korean War
There was no immediate word from the US side, but South Korean media said that the USA team was led by Air Force Maj. After entering disarmament talks with the United States earlier this year, Kim met in June with U.S.

Netflix subscriber slip hints at 'lumpy' road ahead
It didn't add new seasons of its biggest hits, such as " Stranger Things ", nor did a new show become a phenomenon. Looking ahead to the third quarter, the company is calling for $0.68 in EPS on $3.99 billion in revenue .

Latest indictment hits Russian acting as unregistered foreign agent
When we needed assistance from post-graduates, she was among the most active. "Right now everything has to be quiet and careful". She said the news that her former student was suspected of espionage came as an unpleasant surprise. "Ms.

12 injured when lava bomb hits Hawaii tour boat
The other 10 people were treated for superficial injuries upon the boat's return to Wailoa Harbor, according to CNN . Hawaiʻi County Fire officials say a lava bomb punctured the roof of the boat, leaving a large hole.

A dozen new moons have been discovered orbiting Jupiter
Two other new moons were found to be part of a closer group that orbits in the prograde, or same direction as Jupiter's rotation. Nine of the new moons are in the retrograde group, a distant bunch of moons that rotate in the opposite direction of Juipter.

Kuldeep, Rohit help India outclass England in 1st ODI
While the quality of batsmanship was almost flawless, it was only expected that India would cruise in such a meagre run chase. When Moeen Ali departed for just 13 England were floundering at 239 for six with less than 10 overs to play.