GST Council announces tax cuts: 88 items now get cheaper

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Piyush GoyalThe GST Council on Saturday announced the rate cut on 88 items and also waived off tax from certain essential products including sanitary napkins.

Several items such as Refrigerator, washing machine, small screen TV, storage water heaters, paints and varnishes, that earlier attracted 28 per cent, will now levy just 18 per cent.

Daily-use items like perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium-ion batteries, have also been lowered to 18 per cent.

The revised tax rates will be effective from 27 July.

 “Every state wanted that the rates on these items be lowered so that the middle income households are benefitted … It has also been decided that the GST Council will rise above revenue consideration and focus more on job creation and economic growth,” finance minister Piyush Goyal said.

Further, tax rate on ethanol has been dropped to 5 per cent from 18 per cent. In addition to this, footwear costing up to Rs 1,000 will now be attracting 5 per cent Goods and Services Tax (GST). As of now, footwear worth Rs 500 attracted 5 per cent GST, and those that are above Rs 500 attracted 18 per cent tax.

Several other items such as idols made of stone, marble, wood, rakhi not embedded with stone, phool jhadu, sal leaves, are exempted from GST.

“GST Council today approved reduction in rates of 88 goods and services. Money in the hands of all sections of society– the poor, households, women, farmers and senior citizens,” said Goyal.

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