Here’s why sanitary napkins are under 12% GST slab
After facing criticism from all corners over 12% GST on sanitary napkins, the government issued a justification. In an official statement, it said that earlier, the product attracted concessional excise duty of 6% and 5% VAT and, thus the pre-gst estimated total tax incidence on sanitary napkins was 13.68%. Therefore, the 12% GST rate on sanitary napkins is less than what was charged earlier. It further said that reducing the GST rate on sanitary napkins to nil will however result in complete denial of ITC to domestic manufacturers of sanitary napkins and zero rating imports. This will make domestically manufactured sanitary napkins at a huge disadvantage vis-à-vis imports, which will be zero rated. Earlier, congress mp Sushmita Dev started an online petition demanding to reduce or abolish the tax on sanitary napkins. The government was even criticised for 12% GST on it. Reacting on the petition and widespread protest on social media, women and child welfare minister maneka gandhi said that she has written to the union finance minister Arun Jaitley to seek his intervention. Surprisingly, 70% women in India cannot afford sanitary napkins.