Chandigarh,217.18-28th GST Council held in Delhi has decided to reduce the rate of tax for most of the daily used electronic items. Sanitary napkins have been exempted from GST whereas rate of tax on items such as Paints, Television, Video Games, Refrigerators, Freezers and Washing Machines has been reduced from 28% to 18% depending upon the size and the capacity of the electronic item. Most of the electronic items had now been kept at 18%. While Air Conditioner remain to be taxed at 28% GST. GST Council also discussed to keep the luxury and sin items in 28%. Since this is a huge tax reduction and looking at the volume, we can expect active anti-profiteering measures be enforced on the electronic companies. The Leather Items have been reduced from 28% to 18%.

Item

Earlier GST Rate

Now GST Rate

Television up to 28 inches

28%

18%

Television beyond 28 inches

28%

28%

Washing Machine

28%

18%

Refrigerators

28%

18%

Paints and Varnishes

28%

18%

Wall Putty

28%

18%

Sanitary Napkins

12%

NIL

Foot Wear less than Rs.1000

12%

5%

Also there was a reason for smile for MSME and small startups. The compliance burden for the taxpayer having turnover up to 5 crores would be required to file the returns on quarterly basis. Also taxpayers filing NIL return would also now file returns on quarterly basis instead of monthly returns. But the payment of tax (where applicable) would continue to be on monthly basis.
Also GST Council approved 46 amendments proposed by the government. These amendments shall now be put in the on-going session of parliament, once approved the GST law will be amended suitably.
Keshav R Garg
(B.Com, CA, CS, ISA(ICAI))
Faculty for GST: Indirect Tax Committee of ICAI
Author: Bharat's GST Ready Reckoner
A Handbook on GST
Member: Indirect Tax Committee of CII, PHDCCI, MyGst.MyTax Foundation
Address: 3328, Sector 27 D, Chandigarh, India - 160 019
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