This would be a major relief to the small traders across the country.
The plea to exempt sanitary napkin from GST has been going on for a long time. The proposed amendments to the goods and services tax (GST)-related laws, simplification of GST returns, the creation of GST appellate tribunal and the revenue position of states were among the key items slated for discussion in the 28th GST Council meeting.
The following development was later confirmed by Delhi Deputy Minister Manish Sisodia after the 28th GST Council Meet that was being held in the national capital. Also, rakhis, sal leaves, the raw materials used to make regular brooms have also been fully exempted from being charged under GST.
Women and child development minister Maneka Gandhi had also written to Jaitley past year, asking him to provide 100 percent tax exemption to eco-friendly and bio-degradable sanitary napkins under the GST.
GST on hotel room rates will be now taxed at "declared tariffs".
The high court bench had said sanitary pads are a necessity, and there can not be any explanation to tax them and exempt other items by listing them in the category of necessities.
The biggest rate cuts, however, came in white goods.
Lithium-ion batteries, vacuum cleaners, food grinders, mixers, storage water heaters, head dryers, hand dryers, paint, varnishes, water cooler, milk cooler, ice cream coolers, perfumes, toilet sprays and toilet preparation brought to 18% from 28% slab.
All decisions will be effective from June 27, Goyal said. The Council will discuss further on what further benefits could be given to them, he said.
A new set of simpler return filing forms - Sahaj and Sugam - are also in the works that would be finalised soon, Goyal said. The charge is applicable on a registered dealer, if he buys goods from a dealer not registered under GST. However, the receiver of the good/service is eligible for input tax credit, while the unregistered dealer is not.
Currently, the registered buyers from small taxpayers having turnover up to 1.5 crores are eligible to avail ITC on a monthly basis. The court also expressed its displeasure over the absence of any women in the 31-member GST Council.
It has now been pushed till September next year.