GST Council Meet: Sanitary napkins exempted from tax

Ann Santiago
July 23, 2018

Sanitary napkins are taxed 12 percent tax under the one-year old GST regime, which attracted serious criticism from various quarters.

The return will have two tables - one for reporting outward supplies and one for availing of input tax credit based on invoices uploaded by the supplier. Now, there is much to be said about why MNCs dominate the sanitary pad market, the environmental costs of sanitary napkins and so on.

The council has recommended about 17 amendments under the CGST, IGST, UTGST and the GST (compensation to states) laws.

Modi was heading high-powered committee comprising finance ministers of different states considering roll-out of GST in 2012-13.

The minister further informed that the council would have a special meeting on August 4 to address concern of small and medium enterprises. He was given the additional charge of the Finance Ministry after Arun Jaitley was admitted to AIIMS for a kidney transplant.

The Goods and Services Tax (GST) Council meet in New Delhi on Saturday.

The GST rate cut will come into effect from July 27.


However, the tax cut will lead to higher sales which could offset revenue losses, Mani added.

"Out of the 49 items now taxed at the highest rate of 28%, rates on 17 have been reduced to 18%", Pratik Jain, partner & leader, indirect tax, PwC, said in a note.

Let's assume that MRPs of sanitary napkins will remain unaffected.

"The broad-level reductions could lead to lower tax collections for the next few months, but will lead to volume expansion which could more than make up for the reduction especially as we are headed towards the festive season", he said. The move also gave birth to some fantastic artwork like this one by Instagram user @jiljilramamani, celebrating the news and "sending hugs out into the universe for every voice of dissent raised over the last year". They are often forced to stay at home due to a lack of access to clean hygiene products, while also facing stigma.

Periods are among the leading factors for girls to drop out of school in India, where four out of five women and girls are estimated by campaigners to have no access to sanitary pads.

One of those days when a news brings tears of joy as a cause close to ur heart gets fulfilled.Thank you, #GSTCouncil, for understanding the need for menstrual hygiene & exempting sanitary pads from tax. Tax rate on ethanol has been slashed to 5 per cent from 18 per cent at present. This is when it is a necessity for them and concerns both sanitation and menstrual health of a woman.

As per NDTV reports, lawmaker Sushmita Dev had launched a petition to demand a reduction or total removal of taxes on pads, citing that about 70 per cent of women in the country could not afford them. Between Rs 2,500 to below Rs 7,500 GST is levied at 18 per cent and that of Rs 1,000 and below Rs 2,500 it is 12 per cent.

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