Here’s why san­i­tary nap­kins are un­der 12% GST slab

Governance Now - - BRIEFINGS -

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.

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