The Goods and Services Tax (GST) Council on Saturday slashed tax rates on an array of consumer products, besides clearing 46 amendments, that will be subsequently passed in the Parliament.
At the 28th meeting held here, the GST Council decided to slash taxes on as many as 17 items from 28 per cent to 18 percent. The decisions taken today will be applicable from July 27, Interim Finance Minister Piyush Goyal said in a tweet after the meeting.
The Council also decided that traders with turnover up to Rs 5 crore will deposit GST monthly and will not file the returns quarterly.
The Council decided to fully exempt sanitary napkins from GST, from the existing 12 percent.
The GST council decided to cut the GST rate on TVs upto 68cm, Lithium ion batteries, vacuum cleaners, food grinders, mixers, storage water heaters, head dryers, hand dryers, paint, varnishes, perfumes, toilet sprays and toilet preparation air conditioners, refrigerators, washing machines, trailers, video games to 18 per cent from the existing 28 per cent.
Small handicraft, including deities made from stone, marble and wood, is also exempted from GST. Rakhis are also 100% exempt from tax, except those made of gold or having precious/semi-precious stones.
GST on imported urea has also been reduced to five per cent. Besides revenue collection, the GST council will now also focus on job creation as well, the minister said in a tweet.
GST collection had hit Rs 1 trillion-mark in April, followed by Rs 94,016 crore in May and Rs 95,610 crore in June.