GST Council Cuts Tax Rates- TV, Fridge, Washing Machines Now gets Cheaper

On 21^st July 2018, the GST Council has reduced the tax rates on most of the items that are used in day-to-day life. Electrical appliances such as TV (up to 27’’), Washing Machine, Refrigerator, Mixer, Juicer, Grinder etc. have been reduced from 28% GST Slab Rate to 18% GST Slab Rate. Not only this, the Sanitary Napkins have been exempted from the GST Rates. These new rates will come into an effect from 27^th July 2018. The rate reductions are estimated to cost the Government exchequer nearly Rs 7000 Crore.

Earlier, the Council had revised the tax rates on 29 Items in January 2018. In November 2017, the Council had brought down over 200 Items from 28%, 18%, and 12% into lower tax brackets.

The decisions taken in the 28^th GST Council Meeting Updates are as follows-

• Quarterly Returns have been approved for the Tax Payers who have a turnover of less than Rs 5 Core (tax payments will be continued on the monthly basis).

• White Goods such as Refrigerator, Washing Machines, TV (up to 27’’), Grinders. Juicers, Mixers, Electric Iron, Water heaters and Coolers, Video Games, Shaver’s, Lithium Iron Batteries etc. have been cut down from 28% to 18% GST Slab Rates.

• Sanitary Napkins have been exempted from GST Tax Rate.

• GST on Bamboo Flooring has been put under 12% GST Slab.

• Hotels to be taxed on actual tariff basis, not on the declared tariff.

• Rates on paints, wall putty, and Varnish have been dropped down from 28 percent to 18% percent.

• Common use foot wares worth Rs 1000/- will be taxed 5% GST.

• Ethanol Oil for Companies will be taxed for 5%.

• GST Rates of the Leather Goods has been reduced from 28% to 18% GST Tax Rate Slab.

• GST Rates cut to 18% for special purpose vehicles, work truck, trailers.

• Rates on scents, toilet spray, are now under 18% GST Slab.

• Marbles, Stones, Wood deities have been exempted from GST. Rakhis, fortified Milk, are also exempted.

• Handicraft Items will be now taxed at 12%.

• The GST Rates on Handbags, jewelry box, wooden box for paintings, art ware for paintings, handmade lamps etc. are reduced to 12%.

• GST on imported UREA has been reduced to 5%.

The GST Council have not come up with the decision on sugar cess. This will be decided in the next meeting of GST Council. The GST Council has cleared 48 amendments which will be passed in the Parliament. The Council will be introducing RFID Tags along with Goods and Services Tax Network (GSTN) for transporters to reduce harassment of transporters.