GST Council may reduce rates on certain items with low revenue impact on July 21,2018
The GST Council may consider reduction in tax rates on host of items with low revenue implications as part of the tax rationalisation exercise in its next meeting on July 21,2018.
The items which could be considered for cutting of tax rates might include sanitary napkins, handicrafts and handloom goods, besides certain services.
Several industry bodies and stakeholders have been demanding duty cut on items, especially those linked to general health and employment generation in unorganised Sector.
“The Council will take up the issue of rationalisation of taxes on various commodities in view of demand raised by stakeholders. It would focus mainly on those items which are of general consumption, and have low revenue implication,” an official said.
Most handloom and handicraft products, as well as sanitary napkins are currently taxed at 12 per cent, while there are demands to exempt them from the levy.