Simplification is Priority: FM Piyush Goyal After GST Council Meet

Taxpayers with turnover of over Rs 5 crore will file GST returns quarterly, while paying GST on a monthly basis.

Union Finance Minister Piyush Goyal

(Photo: IANS)

Addressing the media after chairing the 28th GST Council Meeting, on Saturday, 21 July, Finance Minister Piyush Goyal announced that sanitary napkins, among several other products, have been exempted from Goods and Services Tax.

In addition, taxpayers with a turnover of over Rs 5 crore will now have to file their GST returns quarterly, while paying GST on a monthly basis, Goyal said. This translates to over 93 percent of taxpayers filing their GST returns only on a quarterly basis, he added.

Further, exemption limit for traders in Assam, Arunachal Pradesh, Himachal Pradesh and Sikkim has been increased from Rs 10 lakh to Rs 20 lakh, Goyal said.

The minister added, “Simplification is our priority. Soon we will link RFID (radio frequency identification devices) tags with Goods and Services Tax Network (GSTN) for transporters. This will reduce harassment of transporters.”

Key Tax Rate Changes

According to BloombergQuint, the key tax rate changes from the GST Council Meet, as announced by Goyal, include:

Exempt from GST:

• Sanitary pads
• Deities made of stone, marbles or wood
• Raakhis, without any precious metals
• Raw material used in brooms
• Commemorative coins circulated by the RBI or government
• Saal leaves
• Fortified milk

From 12 percent to 5 percent:

• Handloom dari
• Fertiliser grade phosphoric acid

From 28 percent to 18 percent:

• Lithium-ion batteries reduced
• Vacuum cleaners
• Food grinders, mixers
• Shavers, hair clippers
• Storage water heaters
• Electric smoothing irons
• Water cooler
• Ice-cream freezer
• Refrigerators
• Hand dryes
• Cosmetics
• Perfumes
• Scents
• Paint
• Varnishes

The new tax rates and decisions taken at the meeting will be applicable from 27 July. Speaking to reporters, Goyal said:

Besides revenue collection, the GST Council will now focus on job creation as well. The decisions taken today will be applicable from 27 July.

Meanwhile, taxpayers who are yet to register under GST have been given a final extension till 31 August. The next GST Council Meet is slated for 4 August.